Is Tax Planning Best Done In Private?

54 Pages Posted: 16 Jul 2019 Last revised: 29 Aug 2019

See all articles by Jeffrey L. Hoopes

Jeffrey L. Hoopes

University of North Carolina (UNC) at Chapel Hill - Accounting Area

Patrick Langetieg

Government of the United States of America - Internal Revenue Service (IRS)

Edward L. Maydew

University of North Carolina at Chapel Hill

Michele Mullaney

University of North Carolina (UNC) at Chapel Hill

Date Written: August 27, 2019

Abstract

We investigate tax planning by privately-held corporations. Privately-held firms are commonly believed to face lower costs of tax planning relative to publicly-held firms, and thus are believed to engage in greater tax planning. We use data from the Internal Revenue Service, allowing us to examine many tax planning measures for public and private firms. Contrary to conventional wisdom, we find no evidence that private corporations tax plan more relative to similar-sized public corporations in the same industry. Moreover, some evidence suggests that private corporations engage in less tax planning.

Keywords: Tax planning, Private corporations, C-corporations

JEL Classification: H25, H26, K34, G38, M41

Suggested Citation

Hoopes, Jeffrey L. and Langetieg, Patrick and Maydew, Edward L. and Mullaney, Michele, Is Tax Planning Best Done In Private? (August 27, 2019). Available at SSRN: https://ssrn.com/abstract=3420362 or http://dx.doi.org/10.2139/ssrn.3420362

Jeffrey L. Hoopes

University of North Carolina (UNC) at Chapel Hill - Accounting Area ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

Patrick Langetieg

Government of the United States of America - Internal Revenue Service (IRS) ( email )

1111 Constitution Avenue, NW
Washington, DC 20224
United States

Edward L. Maydew (Contact Author)

University of North Carolina at Chapel Hill ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States
919-843-9356 (Phone)

HOME PAGE: http://www.kenan-flagler.unc.edu/faculty/directory/accounting/edward-maydew

Michele Mullaney

University of North Carolina (UNC) at Chapel Hill ( email )

300 Kenan Center Drive
Chapel Hill, NC NC 27599
United States

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