Prior multistate tax research on differences in state tax rules, while investigating the effects on revenue, investment, and tax burden, is silent regarding the effect on compliance costs. We investigate factors that explain state income tax compliance costs for large firms. We find that state...

We investigate whether quarterly annual effective tax rate (ETR) estimates are systematically biased in comparison to year-end actual ETRs. We find that estimated annual ETRs in the first, second, and third quarters are systematically higher than year-end ETRs. We then investigate whether...

In this paper, we review the history and purpose of the corporation income tax return’s Schedule M–1 in light of recent attention to corporate reporting issues. Although the traditional role for the schedule has been to assist the audit process, the reconciliation of book to tax accounting...

Using a matched sample of financial data on foreign multinationals and confidential income tax return data on U.S. foreign–controlled corporations (FCCs) during 1987–1996, we examine whether the tax incentives of foreign multinationals influence their U.S. tax reporting. We find that foreign...

This paper is part of the perspectives of three researchers—an economist, an accountant and a lawyer—on tax policy. The domestic production activities deduction in AJCA 2004 provides a specific platform to introduce five concepts from financial accounting that affect tax policy: book income...

Discusses tax law that provides varying opportunities for tax planning. Presents preliminary results that IRS audit adjustments increase in the excess of book income over taxable income and investigates the relationship between compliance and taxes paid.