Abstract This paper adds to the tax compliance literature in two ways. The primary contribution of this research is the exploration of an approach for segmenting noncompliant taxpayers based on a contingency model framework. We examine how the contingency factors of taxpayer objective (correct return or minimize taxes) and tax preparation mode (self-preparation versus use of a professional preparer) affect the relation between taxpayer characteristics and noncompliance behavior. Second, the scope of U.S. taxpayer characteristics tested is expanded to include personality variables, tax knowledge, and anticipated benefits of noncompliance. The contingency framework added to the explanatory power of the model. The relations between the predictor variables and noncompliance behavior varied across the subgroups identified by the contingency factors-taxpayer objective and preparation mode. The additional predictor variables of tax knowledge, anticipated benefits of noncompliance, and the personality characteristics (conformity, responsibility, value orthodoxy, and risk propensity) were especially helpful in distinguishing the profiles of the different groups of noncompliant taxpayers. The paper concludes with a discussion of specific considerations for future research.
Collins et al. (Tue,) studied this question.