Motivating Factors of Income Tax Compliance

First Name: 
Brittany
Last Name: 
Mauldin
Major Department: 
Accounting
Thesis Director: 
Mary Ann Hofmann
Date of Thesis: 
May 2012

Given the recent economic downturn and its effects on Americans financially, how Americans view income tax compliance could influence the successful implementation of a tax increase.  This thesis examines the motivational factors that influence the income tax compliance or noncompliance decision-making process.  Moral behavior, motivating postures, attitude, deviant behavior, trust in the government, risk versus reward, and demographics are also explored as to their influence on the decision to comply or not.  By examining these factors, I clarify what influences compliance or noncompliance and how those factors might change given economic fluctuations. Data is collected from a survey completed online by approximately 250 respondents. Respondents include individuals above 18, cover every range of income and education, and include both genders. Questions specifically target previously-researched demographic characteristics, theories, and the economic factors that might influence income tax compliance. The results suggest that demographics typically do not play a role in compliance; risks increase compliance more than rewards; levels of trust in government, society’s views, and economic hardship do affect motivations towards income tax compliance or noncompliance.  

Keywords: compliance, income tax, motivators, economic hardship