Abstract This study uses an experiment to examine the effect of moral reasoning and educational communications on tax evasion intentions. Taxpayers were randomly assigned to alternate educational communications, and then responded to four hypothetical tax scenarios. Moral reasoning was measured with the Defining Issues Test. The results indicate that tax evasion intentions are significantly lower for those taxpayers who utilize high moral reasoning In their decision making. The results also support that moral reasoning moderates the effectiveness of certain educational communications. Specifically, ft was found that a legal sanctions communication significantly lowers tax evasion intentions for only those taxpayers who utilize low moral reasoning. The findings extend prior tax compliance research and suggest policy implications related to the IRS's proposed development of educational programs to increase voluntary compliance.
Kaplan et al. (Mon,) studied this question.