The IRS's audit enforcement policy is based on the principle that audits deter taxpayers from cheating and therefore increase voluntary tax compliance. For more than forty years, however, there has been considerable debate over whether higher audit rates actually contribute to increased...

The probabilities associated with a tax return being audited or containing underreported tax are formulated here in a different way. This new formulation is mathematically equivalent to the traditional formulation; however, it reveals a trigonometric relationship between these probabilities that...

The classic deterrence theory model of income tax evasion first articulated in 1972 has met significant criticism because it does not comport with the observed rate of tax compliance. This article argues that the classic expected utility model and its various progeny, including nonexpected...