The Role Tax Preparers Play in Taxpayer Compliance: An Empirical Investigation with Policy Implications

Leviner provides an empirical investigation of how tax preparers influence taxpayer compliance and examines the policy implications of preparer conduct. The article presents original data analyzing the relationship between preparer characteristics, qualifications, and client behavior regarding tax reporting accuracy and regulatory compliance. Leviner documents that tax preparers significantly shape compliance decisions through their advice, recommendations, and interpretation of tax law, yet remain subject to minimal oversight and regulation. The author examines existing regulatory frameworks governing tax preparers, including IRS standards and professional licensing requirements, and identifies gaps in accountability and competence assurance. Leviner argues that preparer influence on compliance creates public policy concerns warranting enhanced regulation and enforcement. The article proposes reforms including mandatory licensing, continuing education requirements, and enhanced penalties for non-compliant preparers. Leviner demonstrates empirically that improving preparer regulation could significantly increase tax compliance and revenue while reducing the administrative burden on the IRS.

Keywords: tax preparers · taxpayer compliance · tax compliance · IRS regulation · professional licensing · tax reporting