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Paid Tax Preparer Determinants Extended and Reexamined

Author

Listed:
  • Terry Ashley

    (University of South Alabama)

  • Mark A. Segal

    (University of South Alabama)

Abstract

This study uses 1988 Individual Public Use Panel data to extend and reexamine the Abstract determinants of paid tax preparer use through inclusion of a variable capturing the importance of income-related dollars associated with schedules. Results of logit estimation of the reduced-form model for paid tax preparer use establish that income-related dollars per schedule, as measured by the absolute positive income, are significant and positively correlated to the likelihood of using a paid tax preparer when filing schedules B or E. Estimates reveal that the likelihood of using profes sional tax assistance increases by 4.0% and 1.6% per $10,000 of income-related dollars, respectively, when using Schedule B and Schedule E. Support was found for examining variables measuring dollars in logarithmic form and for controlling for type of 1040 form filed. Results contrary to those of earlier studies were observed for the significance of total positive income, marginal tax rate, measure of depen dents, and Schedule A.

Suggested Citation

  • Terry Ashley & Mark A. Segal, 1997. "Paid Tax Preparer Determinants Extended and Reexamined," Public Finance Review, , vol. 25(3), pages 267-284, May.
    • Handle: RePEc:sae:pubfin:v:25:y:1997:i:3:p:267-284
    DOI: 10.1177/109114219702500301
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    References listed on IDEAS

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    1. Christian, Charles W. & Gupta, Sanjay & Lin, Suming, 1993. "Determinants of Tax Preparer Usage: Evidence From Panel Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 46(4), pages 487-503, December.
    2. Blumenthal, Marsha & Slemrod, Joel, 1992. "The Compliance Cost of the U.S. Individual Income Tax System: A Second Look After Tax Reform," National Tax Journal, National Tax Association, vol. 45(2), pages 185-202, June.
    3. Dubin, Jeffrey A, 1992. "The Demand for Tax Return Preparation Services," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 75-82, February.
    4. Joel Slemrod, 1989. "The Return To Tax Simplification: an Econometric Analysis," Public Finance Review, , vol. 17(1), pages 3-27, January.
    5. Christian, Charles W. & Gupta, Sanjay & Lin, Suming, 1993. "Determinants of Tax Preparer Usage: Evidence from Panel Data," National Tax Journal, National Tax Association, vol. 46(4), pages 487-503, December.
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    Cited by:

    1. Samara R. Gunter, 2019. "Your biggest refund, guaranteed? Internet access, tax filing method, and reported tax liability," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(3), pages 536-570, June.
    2. Kay Blaufus & Frank Hechtner & Axel Möhlmann, 2017. "The Effect of Tax Preparation Expenses for Employees: Evidence from Germany," Contemporary Accounting Research, John Wiley & Sons, vol. 34(1), pages 525-554, March.

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