Third-Party Tax Administration: The Case of Low- and Moderate-Income Households

Authors

Michael S. Barr, University of Michigan Law SchoolFollow
Jane K. Dokko, Board of Governors of the Federal Research SystemFollow

Document Type

Article

Publication Date

1-2008

Abstract

Using a unique household-level data set, this article investigates the taxfiling experiences and refund behavior of low- and moderate-income (LMI) households. We document households' tax-filing behavior, attitudes about the withholding system, use of tax refunds to consume and save, and the mechanisms by which households would prefer to receive their income. We also document the prevalence of the use of tax-preparation services and the receipt of tax refunds and refund-anticipation loans. Finally, we argue that there may be a role for tax administration to enable LMI households to make welfare-improving financial decisions.

Recommended Citation

Barr, Michael S. "Third-Party Tax Administration: The Case of Low- and Moderate-Income Households." J. K. Dokko, co-author. J. Empirical Legal Stud. 5, no. 4 (2008): 963-81.