Tax Compliance: An Investigation Using Individual TCMP Data

In this paper, we analyze the tax compliance behavior of US taxpayers by using a 1979 data set that combines information from a random sample of individual tax returns each of which has been thoroughly audited, IRS administrative records, and sociodemographic data from the Census. We find evidence that both audits and tax code provisions affect compliance. However, the effects are significant for only the low and high income groups. Interestingly, previous research has shown that these groups also participate most actively in underground economic activities, the income from which is not reported on any tax returns. Our results for audits suggest that the "ripple" or general deterrent effect of audits may be many times larger than the direct revenue yield of audits for high income taxpayers. Our results for allowable subtractions from income imply that the 1986 Tax Reform Act changes to lower allowable subtractions may have procompliance effects.

A Structural Equation Model for Tax Compliance and Auditing

In this paper. we estimate a three equation model for taxpayers' reported income and tax liability and for the probability of an audit. Our work differs from previous studies in that our dependent variables in the compliance equations are taxpayer reports rather than a variable related to auditor estimates of noncompliance and in that we estimate a structural equation for audits. We find that audits stimulate compliance although the effect is not large and is not statistically significant for all groups. Audits are more effective at inducing accurate reporting of subtractions from income than of income. Reduced-form results suggest that IRS activities other than audits have significant compliance effects. Results for the sociodemographic variables are interesting and help to explain some seemingly incongruous findings in the literature. We find compliance to be higher, if anything. in areas with less educated and older taxpayers, a large proportion of households headed by females. and a mostly native born population.

Statistics and the Law: Proving Lost Profits

The existence and amount of a firm\u27s lost profits are key elements in most commercial damage cases. Practitioners must be able to demonstrate to the trier of fact the appropriateness and effectiveness of the methodology employed to calculate lost profits.\u27 While practitioners generally employ experts to perform a lost profits analysis, it is essential that practitioners understand the conceptual relationship between the legal standard and the methodology employed. In Texas, the legal standard requires the use of a methodology that goes beyond the mere assertion that the plaintiff has sustained a loss. Given that standard of proof, the purpose of this article is to demonstrate that there is one superior methodology for determining lost profits: multivariate regression analysis

How Adolescents Use Text Messaging Through their High School Years

Co‐construction theory suggests adolescents use digital communication to address developmental challenges. For a sample of 214 ethnically diverse adolescents, this research used direct observation to investigate the frequency, content, and timing of texting with parents, peers, and romantic partners through grades 9–12. Analyses showed that texting frequency follows a curvilinear trajectory, peaking in eleventh grade. Adolescents discussed a range of topics, predominantly with peers. Communication with parents was less frequent, but consistent over time. Approximately 45‐65% of adolescents communicated with romantic partners, texting heavily and about topics similar to those discussed with peers. Texting may help adolescents navigate key developmental challenges of adolescence—the establishment of autonomy, intimate peer relationships, romantic relationships, and self‐identity

Applying the Economic Model of Crime to Child Support Enforcement: A Theoretical and Empirical Analysis.

Child support noncompliance affects both the family and the taxpayer. This papers models the decision to pay based on expected utility maximization. The amount unpaid is determined jointly with the expected enforcement probability. A two-stage estimation technique requiring ordinary least squares and probit is used. The author improves upon previous problems with measurement error and sex-restricted data in deterrence and child support studies, the treatment of endogenous deterrence variables as exogenous, and the use of aggregate data. He finds a joint relationship between the amount unpaid and the enforcement probability. Policies are suggested for increasing compliance and payments to the family. Copyright 1988 by MIT Press.

Statistics and the Law: Proving Lost Profits

The existence and amount of a firm\u27s lost profits are key elements in most commercial damage cases. Practitioners must be able to demonstrate to the trier of fact the appropriateness and effectiveness of the methodology employed to calculate lost profits.\u27 While practitioners generally employ experts to perform a lost profits analysis, it is essential that practitioners understand the conceptual relationship between the legal standard and the methodology employed. In Texas, the legal standard requires the use of a methodology that goes beyond the mere assertion that the plaintiff has sustained a loss. Given that standard of proof, the purpose of this article is to demonstrate that there is one superior methodology for determining lost profits: multivariate regression analysis

Peer Victimization as a Mediator of the Relation Between Facial Attractiveness and Internalizing Problems

This study examined the relations among facial attractiveness, peer victimization, and internalizing problems in early adolescence. We hypothesized that experiences of peer victimization would partially mediate the relationship between attractiveness and internalizing problems. Ratings of attractiveness were obtained from standardized photographs of participants (93 girls and 82 boys). Teachers provided information regarding peer victimization experiences in sixth grade, and seventh-grade teachers assessed internalizing problems. Attractiveness was negatively correlated with victimization and internalizing problems. Experiences of peer victimization were positively correlated with internalizing problems. Structural equation modeling provided support for the hypothesized model of peer victimization partially mediating the relationship between attractiveness and internalizing problems. Implications for intervention programs and future research directions are discussed