Do tax decision support systems affect the accuracy of tax compliance decisions?

Noga, Tracy; Arnold, Vicky

doi:10.1016/s1467-0895(02)00034-9

Cited by 35 publications

(16 citation statements)

References 6 publications

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“…Interestingly, of the tax preparers that made errors in their tax return preparation, individuals using a TDSS were much more likely to be overconfident than manual preparers, supporting the predictions of Noga & Arnold (2002). This phenomenon appears to be driven by the fact that TDSS users were more likely to make input errors that affected multiple facets of the tax return.…”

Section: Introductionsupporting

confidence: 52%

“…Tax return preparation software is considered to be an interactive, intelligent tax decision support system (TDSS) that assists tax preparers in their tax return preparation process (Masselli et al, 2002;Noga & Arnold, 2002). In recent years, the use of such software has skyrocketed.…”

Section: Introductionmentioning

confidence: 99%

“…If the introduction of a TDSS indeed increases tax preparers' confidence levels, such increases in confidence could be detrimental if individuals develop a sense of overconfidence (i.e., greater perceived accuracy on a given task than the actual accuracy of the performance; Lichtenstein et al, 1982). The introduction of a TDSS may be particularly problematic because less experienced tax preparers often fail to function at the same level as more experienced preparers (Noga & Arnold, 2002).…”

Section: Introductionmentioning

confidence: 99%

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The role of confidence in tax return preparation using tax software

Hageman

2010

Advances in Accounting Behavioral Research

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This paper investigates the nature of tax preparers' confidence, as well as how the introduction of a tax decision support system (TDSS) affects tax preparers' confidence levels. Psychological theories of confidence (e.g., Einhorn & Hogarth, 1978) are drawn upon to develop predictions regarding the role of process (ex-ante) and outcome (ex-post) confidence in tax return preparation. An experimental methodology is used with 114 inexperienced and experienced participants that prepare an individual income tax return manually or with tax preparation software (a TDSS). Less experienced tax preparers have lower levels of ex-ante confidence, and are more likely to be overconfident in the accuracy of their performance. Furthermore, when examining only the participants that made errors in their tax return preparation task, those that prepare the return with the TDSS are significantly more likely to be overconfident in their performance. These results support the predictions of Noga & Arnold (2002) and suggest that inexperienced users' over-reliance on a TDSS (Masselli et al., 2002) may be due to individuals' overconfidence in the accuracy of their performance with the software.

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Section: Introductionsupporting

confidence: 52%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The role of confidence in tax return preparation using tax software

Hageman

2010

Advances in Accounting Behavioral Research

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“…Studies of the use of tax preparation software by novice tax preparers provides evidence of such technology dominance as novices overreacted to audit flags in the software and over reported tax liability (Masselli et al , 2002) and novice tax preparers taught through tax preparation software were unable to prepare tax returns manually (Noga and Arnold, 2002). This latter case reinforces the concern that poor decision-making becomes even more likely if the intelligent decision aid fails and the decision-maker is left facing a decision not encountered before (Gal and Steinbart, 1987).…”

Section: Technology Dominancementioning

confidence: 99%

Impact of intelligent decision aids on expert and novice decision‐makers’ judgments

Arnold¹,

Collier²,

Leech³

et al. 2004

Accounting & Finance

Self Cite

105

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Businesses have invested tremendous resources into intelligent decision aid development. A good match between user and aid may improve the expert decision-maker's decision quality. However, novices may be prone to poorer decision-making if intelligent decision aids are more expert than the user. The present paper provides an empirical test of the impact of decision aids on subjects with differential expertise levels. The results support the contention that intelligent decision aids aggravate bias in novices' decision-making but mitigate bias in experts' decision-making processes. Intelligent decision aids may be best viewed as complements to expert decision-makers during complex problem analysis and resolution. Copyright 2004 Accounting and Finance Association of Australia and New Zealand.

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“…Saad [16] examined taxpayers' views on their level of tax knowledge and the perceived complexity of the income tax system, results of which suggested that taxpayers have inadequate technical knowledge and perceive tax system as a complex. Noga and Arnold [17] indicated that a TDSS can help both experienced and novice tax preparers make better decisions even though the novices cannot perform as well as experienced tax preparers. They concluded that tax compliance is improved with the use of a decision support system.…”

Section: Literature Reviewmentioning

confidence: 99%

The Research on Coordinated Decision-Making Method Tax System Based on Subject Data

Chuang

Hou

et al. 2015

Discrete Dynamics in Nature and Society

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Academically, the research of subject database of tax system aims to set up an efficient, harmonious virtual data application environment. Subject data, in application and management, has been on demand polymerized and autonomously collaborated and has reached a balance between instantaneity and accuracy. This paper defines the connotation and characteristics enterprise informationization, designs a value system of enterprise informationization which is subject database oriented, and builds a model for the import of the subject database of enterprise informationization. Meantime, this paper describes the structure of the subject database based information import model and forges the model's theoretical basis of subject data import in tax system. Using the model can make an analysis on the information of data warehouse, storage information, and tax information to provide decision support for the tax administrators.

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Do tax decision support systems affect the accuracy of tax compliance decisions?

Cited by 35 publications

References 6 publications

The role of confidence in tax return preparation using tax software

The role of confidence in tax return preparation using tax software

Impact of intelligent decision aids on expert and novice decision‐makers’ judgments

The Research on Coordinated Decision-Making Method Tax System Based on Subject Data

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