Does giving tax debtors a break improve compliance and income? Evidence from quasi‐random assignment of IRS Revenue Officers

C-Tier
Journal: Economic Inquiry
Year: 2025
Volume: 63
Issue: 2
Pages: 486-503

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

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

Abstract

This paper uses the quasi‐random assignment of IRS Revenue Officers to tax debtors' cases as an instrumental variable to identify the causal effects of suspending debt collection on tax compliance and future income. In contrast to uninstrumented estimates, we find no statistically significant evidence that putting off attempts to collect debt reduces compliance with future tax obligations or future reported income. Among marginal hardship cases, pausing collection instead increases future income, specifically wage earnings by the taxpayer's spouse. In addition, we address concerns about potential non‐random assignment of Revenue Officers.

Technical Details

RePEc Handle
repec:bla:ecinqu:v:63:y:2025:i:2:p:486-503
Journal Field
General
Author Count
4
Added to Database
2026-01-24