This paper reports the results of a field experiment conducted in Washington State to improve compliance with the use tax and the Business and Occupation (B&O) tax. As part of the program, the Department of Revenue mailed letters that enhanced perceived detection risk and/or raised penalty...

Notes that ethical beliefs generally have not been considered in behavioral models of tax compliance, and argues that taxpayers' moral beliefs are highly significant -- and may represent the missing variable in compliance decision-making models.