Abstract
More and more individual taxpayers are using the online services of commercial tax software to prepare and file their tax returns electronically. However, online tax return does have risks, especially the risk of information privacy evasion. Little research has been conducted on the linkage between taxpayers’ online information privacy concerns (TOIPC) and taxpayers’ behavior intentions, and factors affecting online taxpayers’ information privacy concerns. This study identifies three primary dimensions for TOIPC (that is, control, awareness, collection), conducts empirical testing on the relationship between each privacy concern dimension and taxpayers’ intention to use online tax software, and explores factors affecting TOIPC (age, gender, trust, perceived risk, and victim of previous privacy invasion). The results suggest that taxpayers with high privacy concern about information collection will be less willing to use online tax software to file tax. Taxpayers’ perceived risks have significant positive relationship with the taxpayers’ online information collection concern. Implications and future research are discussed. Key words: Privacy concerns, online tax software, intention to use.
Highlights
More and more individual taxpayers are using the online services of commercial tax software to prepare and file their tax returns
To address the inadequacies in current literature, this study provides a comprehensive examination on three dimensions of taxpayers’ online information privacy concerns (TOIPC), conducts empirical testing on the relationship between each dimension and taxpayers’ intention to use online tax software, and explores factors affecting TOIPC
This study investigates whether online privacy concerns have any impact on the taxpayers’ intention to use online tax software to prepare and file their tax return, and Independent variable Gender Age Perceived risk Privacy victim Trust Adjusted R2
Summary
More and more individual taxpayers are using the online services of commercial tax software to prepare and file their tax returns. According to the most recent data from the Internal Revenue Service (IRS, 2017), 127.3 million taxpayers (about 87.6%) e-filed their tax returns in 2016 either through tax professionals (58.5%) or self-prepared (41.5%).. There are many advantages in using software to prepare and file tax return, such as calculation accuracy, improved efficiency, decreased processing costs by the Internal Revenue Service (IRS, 2017), and quick refunds (Brink and Lee, 2015). Online tax return does have risks, especially the risk of information privacy evasion. Due to the preparation, filing, and storage of tax returns in electronic form, the security of tax return information is a critical issue (Schwartz, 2008). Schwartz states that tax preparation software, like other software, is subject to hacking, viruses, account breaches, and software failures
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