What question did this study set out to answer?

This research aims to evaluate how the magnitude of IRS assessments and engagement letters impact tax preparer liability.

The Effect of Magnitude of IRS Assessment and Engagement Letters on Tax Preparer Liability.

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Experimental study explores how IRS assessments and engagement letters affect tax preparer liability.

This research aims to evaluate how the magnitude of IRS assessments and engagement letters impact tax preparer liability.
Conducted an experiment with 117 participants from civic organizations.
Varying IRS assessment magnitudes and engagement letter types in hypothetical scenarios.
Measured tax preparer liability through likelihood of lawsuits and dollar amounts sought.
Increased IRS assessment magnitudes led to a higher percentage of participants bringing suit against tax preparers.
Engagement letters clarifying responsibilities reduced the dollar amounts in lawsuits.
Limiting claims in engagement letters surprisingly increased the likelihood of holding tax preparers responsible.

Krawczyk et al. (1995) studied this question.

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