Reducing evasion through self-reporting: Evidence from charitable contributions

A-Tier
Journal: Journal of Public Economics
Year: 2018
Volume: 165
Issue: C
Pages: 31-47

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In absence of third-party reporting, taxpayers are required to self-report information with various degrees of detail, ranging from uncorroborated claims to comprehensive records with receipts. Using a quasi-experimental design applied to noncash charitable contribution deductions, I show that even basic self-reporting requirements are effective at reducing evasion but impose large compliance costs on taxpayers. I find that simplified reporting requirements reduce reporting costs by $55 per person and substantially increase claimed donations. However, half of the new donations are due to evasion. Thus, information reporting should only be imposed on total reported donations above a pre-specified threshold.

Technical Details

RePEc Handle
repec:eee:pubeco:v:165:y:2018:i:c:p:31-47
Journal Field
Public
Author Count
1
Added to Database
2026-01-29