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Reminders & Recidivism: Evidence from Tax Filing & EITC Participation among Low-Income Nonfilers / John Guyton, Dayanand S. Manoli, Brenda Schafer, Michael Sebastiani.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Guyton, John.
Contributor:
National Bureau of Economic Research.
Manoli, Dayanand S.
Schafer, Brenda.
Sebastiani, Michael.
Series:
Working Paper Series (National Bureau of Economic Research) no. w21904.
NBER working paper series no. w21904
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Reminders & Recidivism
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2016.
Summary:
This project examines how reminders affect tax filing among lower-income nonfilers (individuals who did not appear on a filed tax return but had income reported by third parties to the Internal Revenue Service). We present novel data on this population and results from two randomized controlled trials. The results demonstrate that one-time reminders increase tax filing, both to claim tax refunds based in part on withholdings and Earned Income Tax Credit benefits, as well as to voluntarily pay balances owed to the IRS. However, these effects do not persist. Consistent with recency effects, individuals who owe a balance due appear more likely to recidivate into nonfiling than those who receive refunds. Follow-up reminders continue to increase tax filing, particularly among individuals who previously had to pay balances to the IRS instead of receive refunds.
Notes:
Print version record
January 2016.

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