Improving the Effectiveness of the IRS’ Automated Substitute for Return Programs

The Internal Revenue Service (IRS) relies heavily on voluntary compliance with the tax code, but it is unable to collect about $1 trillion per year in taxes owed, $37 billion of which is due to individuals’ not filing returns. Economists Elliott Isaac and James Alm, economic psychologist Matthias Kasper, psychologist Erich Kirchler, and IRS management and program analyst Anne Herlache will examine whether behavioral nudges in IRS outreach can increase federal income filing among non-filers. They will conduct a nationwide field experiment for their study.