Abstract
This paper examines whether income level and income type, two factors affecting a taxpayer's ability to pay taxes, impact tax preparation fees. To examine this research question, an empirical analysis was conducted using both an experimental approach and a survey. Experimental results indicate that CPAs estimated higher tax preparation fees for a client with a higher level of income or more unearned income. Survey results suggest that a significant number of CPAs indicate that they would charge higher fees to clients with higher incomes or more unearned income. Respondents who indicated that they, personally, would not charge higher fees to individuals with higher levels of income reported that most CPAs would charge higher fees to these individuals.
Published Version
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