EMPIRICAL STUDY OF INCOME-TAX COMPLIANCE (FROM WHITE-COLLAR CRIME - OFFENSES IN BUSINESS, POLITICS, AND THE PROFESSIONS. REV. ED., 1977 BY GILBERT GEIS AND ROBERT F MEIER - SEE NCJ-40489)

• NCJ Number: 40492
• Author(s): H M GROVES
• Date Published: 1977
• Length: 9 pages
• Corporate Author: Free Press
• Publication Format: Document
• Language: English
• Country: United States of America

Annotation

THIS STUDY MEASURES UNREPORTED RESIDENTIAL RENTAL INCOME AND FAILURE TO COMPLY WITH TAX OBLIGATIONS IN ONE WISCONSIN CITY.

Abstract

CLASSIFIED BY TYPE OF FACILITY, THE SAMPLE INCLUDED 205 CASES OF MULTIPLE UNITS, 63 CASES OF ROOMS, 48 CASES OF SINGLE-UNIT STRUCTURES, 8 OF GARAGES, AND 11 OF SUBLETTING. IN THE CLASS OF MULTIPLE UNITS, RESEARCHERS FOUND 182 CASES AND $304,865 OF ESTIMATED GROSS RENT AVAILABLE FOR COMPARISONS WITH TAX RETURNS. THE EIGHT CASES (TOTALING $11,261) IN WHICH LANDLORDS REPORTED NO RENTAL INCOME WHEN FILING THEIR INCOME TAX RETURNS REPRESENTED THE CLEAREST INSTANCE OF NONCOMPLIANCE AND AMOUNTED TO NEARLY 4 PERCENT OF TOTAL ESTIMATED GROSS RENT. THE 23 CASES FOR WHICH NO INCOME TAX RETURNS WERE FILED (TOTALLING $25,686 IN ESTIMATED RENT) REPRESENTED EIGHT PERCENT OF THE TOTAL ESTIMATED GROSS RENT. THE REMAINING 151 CASES(TOTALING $257,917 IN ESTIMATED RENT) REPRESENTED ONLY THREE PERCENT OF THE TOTAL ESTIMATED GROSS RENT FROM ALL MULTIPLE-UNIT CASES. ANALYSIS OF DATA ON REPORTED NET INCOME INDICATED THAT GROSS INCOME WAS UNDER-REPORTED BY 20 PERCENT AND THAT EXPENSES WERE OVER-REPORTED 10 PERCENT, RESULTING IN A RATIO OF AGGREGATE REPORTED TO AGGREGATE ESTIMATED NET RENT OF 51 PERCENT....ELW