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Abstract:
This article examines the social science research concerning why individuals comply (or fail to comply) with their taxpaying obligations. The relevant empirical scholarship on the economic, behavioral and psychological aspects of compliance indicates that multiple factors are at work in fostering voluntary compliance with a person's taxpaying obligations and demonstrates that more than just economic self-interest is at work. The confluence of these factors can be viewed as creating a kind of taxpaying ethos, which explains why most Western democracies have a much higher rate of tax compliance than is predicted by purely economic models. Understanding the factors that shape and promote this taxpaying ethos provides valuable insights into the most effective means for fostering voluntary tax compliance. After reviewing the underpinnings that help create a taxpaying ethos, the article examines how this conceptual understanding of tax compliance can be employed practically to help reduce the level of systemic noncompliance (the so called tax gap) by focusing on altering the taxpaying culture in a specific segment of the population (self-employed individuals and small businesses) that has historically shown high levels of noncompliance.

tax, tax morale, obey, compliance, ethos

Abstract:
This article focuses on the standards governing when an IRS examining agent should assert a deficiency against a taxpayer based on a legal issue. The IRS is charged with enforcing the tax laws and collecting unpaid taxes. However, since the United States uses a self-assessment tax system, the most important means for enforcing the law is for the IRS to create an environment that encourages taxpayers to voluntarily comply. To do this the IRS must provide understandable guidance to taxpayers and avoid over-reaching in its direct dealings with them. This article contrasts the relatively well-defined standards applicable to taxpayers in determining whether a tax return reporting position is permissible with the uncertain state of the law regarding the level of certainty required for the IRS to assert positions. The article maintains that to promote greater taxpayer compliance, the IRS should operate under more stringent standards when asserting positions than would be generally applicable to taxpayers.

tax, position standards, opinion standards

Abstract:
"Deputizing the Gunslingers" discusses the role of lawyers in fostering abusive corporate tax shelters and focuses on the non-statutory constraints that are available to curtail such activities. The article takes the position that even if Congress ultimately lacks the political will to affirmatively legislate against such tax shelters, the tax bar and individual tax attorneys should recognize their duty in maintaining a fair tax system and take actions aimed at dissuading clients from engaging in abusive transactions. The paper discusses relevant ethical rules, malpractice liability issues, reputation concerns and other approaches that can help turn the hired guns of the corporate elite into deputies of the tax system.

Abstract:
This article examines research in the field of social psychology indicating that individuals lack well-defined character traits. Unethical behavior therefore stems from situational factors, not individual personality. The judiciary's move toward strict statutory interpretation is unintentionally eliminating a key situational constraint on unethical behavior. Heightened levels of unethical activity, such as corporate tax avoidance, weaken the public's faith in the legal system and harm the Rule of Law. The increasing popularity of Justice Scalia's brand of strict statutory interpretation is undermining the Rule of Law, rather than promoting it as Justice Scalia claims. To effectively combat corporate tax shelters, judicial attitudes toward strict interpretation must change.

Rule of Law, statutory interpretation, scalia, tax shelter, social psychology

Abstract:
This essay attempts to highlight the core issues in the debate about judicial activism by focusing on an institutional analysis. It argues that judicial activism is neither an unmitigated evil nor an unassailable good. Instead, judicial activism should be seen as a necessary component of our system of institutional checks and balances. Viewed in this light, the salient issue should be how to properly constrain this necessary tool so it can most efficiently achieve its function.

Abstract:
This paper closely examines the language, history and intent underlying the Internal Revenue Code to develop a paradigm for analyzing the extent to which foreigners are subject to the tax laws of the United States. The paper concludes that while some Code provisions were clearly intended to have a broad scope, most others should be read with a significantly more narrow focus. Central to the resolution of such matters is the use of the term "taxpayer" in the Internal Revenue laws. This paper demonstrates that, contrary to certain judicial and administrative dicta, applying the term taxpayer with a circumscribed and contextual meaning can provide a reasoned basis for determining the proper scope of specific U.S. tax provisions.

taxpayer, statutory interpretation

Abstract:
This Article analyzes the ability of tax attorneys to shield a client's identity from disclosure to the Internal Revenue Service under the attorney-client privilege. The Article concludes that, on policy grounds, the attorney-client privilege should be limited in the context of tax planning. Consequently, client identity should not be privileged irrespective of whether a tax shelter is involved. The Article also concludes that the privilege would not be available under the current judicial approach to client identity questions. As a result, recent regulations requiring tax attorneys to maintain lists of clients engaging in specified tax motivated transactions represent an appropriate response to recent tax shelter activity.

attorney client privilege, tax, tax shelter

Abstract:
These days it really does seem like "only the little people pay taxes." Whether they are from the world of politics, sports or entertainment, the elites of this country are demonstrating a penchant for not paying their taxes. Nevertheless, Americans in general continue to exhibit a high degree of tax compliance. Why do most people pay their taxes? What distinguishes them from those who cheat? What can we learn from these differences that could promote greater compliance amoung noncompliant segments of the populace?

This article examines these questions in light of the relevant social science literature. As a general matter, empirical research regarding tax compliance finds that the conventional analysis of compliance in terms of penalties and enforcement activity only represents a piece of the overall compliance dynamic. Beyond such deterrence mechanisms an individual‘s taxpaying behavior is shaped by a wide variety of cultural, institutional, and individual factors. When a confluence of such factors exists within a society they create a cultural norm in favor of honoring one‘s tax obligations that is persistent and self-reinforcing, a "taxpaying ethos." This article hightlights the most relevant factors contributing to the creation of a taxpaying ethos and utilizes them to create a framework for promoting increased tax compliance among historically reticent groups of taxpayers. Part II of this article reviews the inadequacy of the traditional deterrence approach to tax compliance and contrasts it with the taxpaying ethos explanation. Part III examines the empirically identified factors influencing a society's taxpaying commitment. Part IV translates these factors into general policy prescriptions aimed a cultivating a taxpaying ethos in a society.

taxes, taxpayer, income taxes, tax cheat, tax compliance