Taxpayers’ Rights in Sweden

Traders, Taxpayers, Citizens

This article argues that it was through their common relationship to the commercial environment formed by the city that the independent lower middle classes were able to construct a collective identity. The article examines these identities first in the context of a comparison between Rome and Milan, and then within the provincial towns of Lombardy. It suggests that the concern of the petite bo...

Trust Breeds Trust: How Taxpayers Are Treated

Tax compliance has been studied in economics by analysing the individual decision of a representative person between paying and evading taxes. A neglected aspect of tax compliance is the interaction of taxpayers and tax authorities. The relationship between the two actors can be understood as an implicit or "psychological" contract. Studies on tax evasion in Switzerland show that the more stron...

Social Norms and Conditional Cooperative Taxpayers

This paper incorporates tax morale into the Allingham Sandmo (1972) model of income tax evasion. Tax morale is interpreted as a social norm for tax compliance. The norm strength, depending on the share of evaders in the society, is endogenously derived. Taxpayers act conditionally cooperative, as their evasion decision depends on the other agents’ compliance. We characterize an equilibrium whic...

On IRS’s Servicing and Auditing Taxpayers

We consider a model of tax compliance, in which the IRS (Internal Revenue Service) services as well as audits taxpayers as in the real world. Taxpayers are uncertain about whether their incomes are eligible for deduction or exemption and may seek advice from the IRS’s provided taxpayer service to mitigate the uncertainty. It is shown that: (i) depending on the size of taxpayer service, taxpayer...

Fairly Random: On Compensating Audited Taxpayers