arbiter
JournalsAccount

The Impact of Audit Protection Services on Taxpayer Decision Making

Stephanie Walton

Advances in Taxation2024https://doi.org/10.1108/s1058-749720240000031004book-chapter
AJG 2ABDC B
Weight
0.30

Abstract

In this study, we examine the impact of audit protection services on individual taxpayer decision making. Audit protection services provide additional support for taxpayers in the event of an audit including preparation and representation. While these services could provide taxpayers with additional confidence, such services could also foster greater reliance on tax software, possibly resulting in riskier tax decisions. Drawing on risk homeostasis theory, we investigate two factors that could affect taxpayer reliance: the amount of taxes owed and the extent of audit protection services. Our results indicate that taxpayers are more likely to rely on tax software prompts when there are full audit protection services and a greater amount of taxes owed. Further, we find that the provision of full audit protection services reduces the likelihood that taxpayers change their tax reporting behavior. Collectively, we provide evidence on taxpayer interactions with tax software.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1108/s1058-749720240000031004

Or copy a formatted citation

@article{stephanie2024,
  title        = {{The Impact of Audit Protection Services on Taxpayer Decision Making}},
  author       = {Stephanie Walton},
  journal      = {Advances in Taxation},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.1108/s1058-749720240000031004},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The Impact of Audit Protection Services on Taxpayer Decision Making

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.30

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.