Abstract
The purpose of this paper is to analyze empirically for the years 1980-88 the factors which led states with state income taxes to run tax amnesty programs. We find a principal factor to be the level of IRS auditing; in particular, we find that states have tended to free-ride on the IRS-if the IRS is active in a state, then that state is less likely to run a tax amnesty program. Indeed, our estimates indicate that had the IRS audit rate remained constant during the 1980-88 period (instead of falling by almost one-half) , then the cumulative probability that an average state would have a tax amnesty by 1988 would have fallen by almost one-half compared to its actual level.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
