REVISING FORM 1040 FOR THE TWENTY-FIRST CENTURY

James Alm (jalm@tulane.edu), Jay Soled (jaysoled@business.rutgers.edu) and Kathleen Thomas (kathleet@email.unc.edu)
Additional contact information
Jay Soled: Rutgers Business School
Kathleen Thomas: University of North Carolina

No 2305, Working Papers from Tulane University, Department of Economics

Abstract: Since the introduction of Form 1040 early in the last century, the form has largely remained unchanged. However, recent social science research demonstrates that the ways in which tax returns are structured and tax questions are asked can dramatically affect the responses of taxpayers. There is also strong evidence that most taxpayers now prepare their returns with computer software. In light of these developments, this Article argues that the contents of Form 1040 should be revised. In particular, new questions should be strategically and prominently placed on the form. This is not an exercise in mere aesthetics. If handled properly, the by-product of this revision could be greater taxpayer honesty and improved information for the Internal Revenue Service, both of which could yield billions of dollars of additional revenue without raising tax rates.

Keywords: Internal Revenue Service; tax compliance; behavioral economics; nudges; act of omission; act of commission (search for similar items in EconPapers)
JEL-codes: D91 H2 H26 (search for similar items in EconPapers)
Date: 2023-04
New Economics Papers: this item is included in nep-iue and nep-pub
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http://repec.tulane.edu/RePEc/pdf/tul2305.pdf First Version, April 2023 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tul:wpaper:2305

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