Putting TRAC to Work
  Legal and Scholarly
School of Economics and Management, Tilburg University

Tax Enforcement and Restatements
By Young Jin Hwang

My paper is especially interesting in several respects. First, it measures tax enforcement by IRS audit probabilities from Transactional Records Access Clearinghouse (TRAC), a private data research organization. TRAC obtains this information directly from IRS's Audit Management Information Reporting System (=AIMS) from which IRS itself also generates official reports for the public and Congress. The use of IRS audit probabilities from TRAC as a proxy for tax enforcement is quite new in this research field, and largely contributes to quantifying unobservable tax enforcement level. Before the introduction of TRAC data, the effect of change in tax enforcement was only examined through an event study (e.g.Desai et al , 2007) in whichthe election of Vladimir Putin and his introduction of unprecedentedly strict tax regulation was used as an event and the change in the behaviors of firms before and after the event was measured to study the effect of tax enforcement.....[Citing TRAC Research].

Transactional Records Access Clearinghouse, Syracuse University
Copyright 2013
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