Thesis (Ph. D.)--University of Washington, 1994. / Vita. Includes bibliographical references (leaves [108]-111).

Thesis (Ph. D.)--University of Washington, 2005. / Vita. Includes bibliographical references (leaves 92-97).

<p>This study examines whether taxpayers intentionally avoid IRS third-party reports. In 2017 an IRS amendment created an exogenous shock that impacted how third parties report gambling winnings to the IRS. In thoroughbred racing, this shock had a substantial impact on certain types of wagers. This paper considers how gamblers reallocated their money following the shock. Using a difference-in-differences research design that compares U.S. tracks to Canadian tracks, I find that gamblers increased their investment in wager types that had become less likely to trigger third-party reports by 27 percent. In the U.S., over $400 billion in tax revenue goes uncollected annually, largely due to unreported income. Third-party IRS reporting is considered the most effective way to reduce underreporting, but there is limited understanding of how taxpayers interact with third-party reporting rules. This paper provides evidence on this interaction, showing that taxpayers purposefully avoid third-party reports to facilitate tax evasion.</p>

The equity holders of a firm typically control investment choices but enjoy limited liability, since the value of equity is the firm’s value in excess of the value of debt and other fixed claims. The asset substitution problem allows equity holders to expropriate value from other claimants by shifting downside risk from failed projects. To do so, equity holders substitute riskier investments for those with less risk. In the context of tax choices, firms pursue uncertain tax projects to reduce their current or future tax payments. Given the negative consequences of tax uncertainty documented by prior studies, understanding why firms pursue more uncertain tax projects is important for both internal and external stakeholders. In this study, I construct a model of the firm that highlights how asset substitution incentives influence the adoption of uncertain tax projects. I confirm the inferences from this model empirically to illustrate when firms are more likely to prefer more uncertain tax projects due to the investment distortion created by asset substitution incentives. Specifically, I find that firms in financial distress, firms with high growth potential, and loss firms adopt more uncertain tax projects than other firms. These results provide relevant insight for debt holders, regulators, and enforcement bodies.

The thesis focuses on accounting and taxation system and their different approach in solving particular problems. The first part of this thesis characterizes the essence of accounting, its role and the importance for its users. It also describes the regulation of accounting, influences that contributed to the creation of a legislative framework and the accounting standards nowadays. The description of the tax system is focused on the definition of basic elements of taxes, a brief overview of the current tax system in the Czech Republic and the taxes in accounting. Particular attention is paid to differences and complications that arise from different perspective of tax and accounting system. This concerns the area of provisions, depreciation, valuation allowance and their connection with deferred tax.