Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

Objectives of Using Tax Preparation Servicesand Important Factors in Selecting a Tax Preparer

  • Myeong-Hee Chu

Asian Tax Journal Vol. 8 No. 4 (2007), pp. 101-127

Abstract

The current research is to know the objectives of using tax preparer services and important factors in selecting a tax preparer. The data were obtained from a mail survey of 330 small businesses, which were using tax preparation services. The results are as follows:First, the main objective of using tax preparer services is to file a correct tax return(52.0%). Other objectives are to minimize their tax liability(20.1%), to minimize filing effort in a tax return(15.2%), and to reduce the audit probability (6.8%). Second, the respondents regard “knowledge of a tax preparer” as the most important factor in selecting a tax preparer. Also, “minimization of their tax burden” is found to be important. However, “physical conditions of tax accountant office” is not regarded as an important factor.Third, there are some differences in the important factors in selecting a tax preparer according to the objectives of using tax preparers. Taxpayers with a correct tax return objective think “tax preparer's career” and “recommendation of the acquaintance” more important than the other objective groups do. Taxpayers with minimize filing effort in a tax return objective regard “immediate tax service” more important than the other objective groups do. However, taxpayers with reducing the audit probability objective select “tax minimization” as the most important factor, and this result is somewhat different to those of other groups. These results imply that tax preparers may provide different tax services and prepare new client strategy according to the objectives of using tax preparer services and important factors in selecting a tax preparer.<Key words> tax preparer, tax services, objectives of using tax services

Keywords

  • tax preparer
  • tax services
  • objectives of using tax services

Related Articles