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Revising Form 1040 For The Twenty-First Century

Author

Listed:
  • James Alm

    (Tulane University)

  • Jay A. Soled

    (Rutgers Business School)

  • Kathleen DeLaney Thomas

    (University of North Carolina)

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.

Suggested Citation

  • James Alm & Jay A. Soled & Kathleen DeLaney Thomas, 2023. "Revising Form 1040 For The Twenty-First Century," Working Papers 2305, Tulane University, Department of Economics.
    • Handle: RePEc:tul:wpaper:2305
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    File URL: http://repec.tulane.edu/RePEc/pdf/tul2305.pdf
    File Function: First Version, April 2023
    Download Restriction: no
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    More about this item

    Keywords

    Internal Revenue Service; tax compliance; behavioral economics; nudges; act of omission; act of commission;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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