2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason...
-
Upload
melissa-pratt -
Category
Documents
-
view
214 -
download
0
Transcript of 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason...
![Page 1: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/1.jpg)
2012 ATA Doctoral Consortium
Tax (professional) decision making
Anne M. Magro
George Mason University
![Page 2: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/2.jpg)
OVERVIEW
Who are the major players in tax DM settings? What data are available or can be acquired? What does the experimental research methodology
bring to the table? Which DMs/decisions could we study using
experiments? Which DMs/decisions have we studied using
experiments and what have we learned? What are the opportunities and challenges in
pursuing experimental tax?
![Page 3: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/3.jpg)
Major Players
![Page 4: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/4.jpg)
Major Players
![Page 5: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/5.jpg)
Major Players
![Page 6: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/6.jpg)
Major Players
![Page 7: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/7.jpg)
Major Players
![Page 8: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/8.jpg)
Available data
Tax data in financial statements tax provision footnotes
Court decisions IRS panel data
![Page 9: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/9.jpg)
Acquirable data
Surveys Field studies Partnerships with taxing authorities Experiments
![Page 10: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/10.jpg)
Acquirable data
Surveys Field studies Partnerships with taxing authorities Experiments
Top three reasons to use experiments…
![Page 11: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/11.jpg)
Advantages of experiments
CONTROL CONTROL CONTROL
That control comes from …
![Page 12: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/12.jpg)
Advantages of experiments
CONTROL
Rigor is up front. Design of environment Manipulated variables Random assignment to treatments
What that rigor does for us …
![Page 13: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/13.jpg)
Advantages of experiments
CONTROL Rigor is up front
It allows us to test theory talk about causation Test environments/policies that do not exist
But at the expense of …
![Page 14: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/14.jpg)
Advantages/disadvantages of experiments
CONTROL Rigor is up front Test theory Talk about causation Test new environments/policies
Decreased external validity
![Page 15: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/15.jpg)
DMs we could study with experiments
![Page 16: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/16.jpg)
DMs we have studied experimentally
![Page 17: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/17.jpg)
Behavioral tax publications 1992-2012
Journal Tax pros Taxpayers others
TAR 6 3 0
JAR 1 0 0
JAE 0 0 0
CAR 1 5 0
AOS 1 0 0
RAST 0 0 0
JATA 14.5 24.5 3
BRIA 6 4 1
![Page 18: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/18.jpg)
![Page 19: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/19.jpg)
Tax Professional DM: TasksTransaction-based DM:
Fact identification
Issue identification
Information identification
Search
Selection
Stopping rules
Information evaluation
Information weighting
Analogical reasoning
Info characteristics combination
Transaction structure recommendation
Transaction structure identification
Risk assessment
Transaction selection
Reporting option recommendation
Option identification
Risk assessment
Option selection
Practice-based DM:
Documentation/justification
Client communications
Practice management
Client selection
Client retention
Review process
Negotiations
Clients
IRS
Professional. staff management/development
Training
Staffing
Time budgeting
Time recording
Outsourcing
Tax Risk Management
![Page 20: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/20.jpg)
Tax Professionals DM: Individual/Task/Environment FactorsDynamic information
Teams
Groups
Hierarchical teams
Expertise
Experience
Incentives
Knowledge/memory
Planning/compliance
Complexity
Ambiguity
Justifiability demands
Creativity
Client preferences
Accountability
Information order/presentation
Decision aids
Practice risk
Regulatory environment
Professional standards
Government regulation
Support thresholds
Penalties
Reporting requirements
Client characteristics
Litigation risk
Time pressure
Outsourcing
Certification
Ethics
Financial reporting
Risk preferences
Client advocacy
![Page 21: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/21.jpg)
Other parties
TASKS
FIN 48 analyses
Auditors
Tax pros
Financial accountants
Negotiations and settlements – IRS
Applying the law – Judges and juries
Investment decisions – investors
Purchasing decisions – customers
Voting patterns – voters
INDIVIDUAL/TASK/
ENVIRONMENT
Knowledge
Experience
Expertise
Incentives
Complexity
Ambiguity
Risk
Etc….
![Page 22: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/22.jpg)
Opportunities in experimental tax Tax is a unique setting So much has not been done!!!
Within tax professional domainWithin taxpayer domainWithin domain of other DMs
Relatively small number of researchers Terrific community of scholars
ATA Mid-year Meeting and JATA Conference ABO Research ConferenceBehavioral Tax Symposium
![Page 23: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/23.jpg)
Challenges in experimental tax
Tax is a unique setting So much has not been done!!! Relatively small number of researchers Access to professional participants is limited Doing good work is hard Overcoming bias against experimental work
![Page 24: 2012 ATA Doctoral Consortium Tax (professional) decision making Anne M. Magro George Mason University.](https://reader036.fdocuments.net/reader036/viewer/2022062618/5514c2d055034640138b598b/html5/thumbnails/24.jpg)
Literature Reviews
Taxpayer Decision Making• Jackson and Milliron. 1986. Journal of Accounting Literature• Cuccia. 1994. Journal of Accounting Literature
Tax Professional Decision Making• Shields, Solomon and Jackson.1995. Book Chapter.
Behavioral Tax Research: Prospects and Judgment Calls• Roberts. 1998. Journal of the American Accounting
Association