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Increasing Tax Compliance in Washington State: A Field Experiment

Iyer, Govind S., Reckers, Philip M.J., and Sanders, Debra L.

Abstract:

This paper reports the results of a field experiment conducted in Washington State to improve compliance with the use tax and the Business and Occupation (B&O) tax. As part of the program, the Department of Revenue mailed letters that enhanced perceived detection risk and/or raised penalty awareness. Results indicated that the enforcement strategy produced a same-period improvement in use tax compliance. Subsequent year effects were not examined. Compliance with the B&O tax was unaffected.

Citation

Iyer, Govind S., Reckers, Philip M.J., and Sanders, Debra L. (2010), Increasing Tax Compliance in Washington State: A Field Experiment, National Tax Journal, 63:1, pp. 7-32

DOI: dx.doi.org/10.17310/ntj.2010.1.01