Client Variables Associated with Four Key Determinants of Demand for Tax Preparer Services: An Exploratory Study

There is a rich literature associated with the dichotomous decision to hire/not-hire tax preparation services. There is also some research assigning motivation to the decision to hire tax preparation services. However, no research has examined the underlying demographics and key perceptions of clien...

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Bibliographic Details
Published in:Accounting horizons 2012-09, Vol.26 (3), p.417-437
Main Authors: Fleischman, Gary M, Stephenson, Teresa
Format: Article
Language:English
Subjects:
Accountants
Advocacy
Beds
Compliance
Customers
Data collection
Demographics
Demography
Motivation
Professionals
Public accountants
Response rates
Studies
Survey data
Tax preparation
Tax services
Taxation
Taxpayers
U.S.A
Variables
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Summary:There is a rich literature associated with the dichotomous decision to hire/not-hire tax preparation services. There is also some research assigning motivation to the decision to hire tax preparation services. However, no research has examined the underlying demographics and key perceptions of clients that do hire tax preparation professionals to determine which are associated with specific motivations to hire. We focus on the four most common motivations to hire a preparer found in extant literature (i.e., saving money, saving time, legal compliance, and protection from the IRS). Using survey data, we perform exploratory analysis using MANCOVA to discover what client demographics and perceptions underlie each motivation. Our most noteworthy finding is that client perceptions of tax advocacy are positively associated with all four focal motivations to hire. Our results also suggest that female clients, more than male clients, choose tax preparers with a desire to save time and to be legally compliant. In addition, taxpayers with children tend to be more concerned with legal compliance. We also find that taxpayers with relatively complex returns are less likely to hire a preparer to provide a legally compliant return and to gain protection from the IRS.
ISSN:0888-7993
1558-7975
DOI:10.2308/acch-50167