Reducing income tax preparation errors: An exploratory study of tax preparer's perceptions of training and its impact on income tax preparation

Research indicates that tax preparers' training and education impact their compliance with tax laws and adherence to standards of practice in tax preparation. Greater compliance with tax laws and adherence to standards of practice can overall reduce tax preparation errors. This qualitative study explored the perceptions of 17 tax preparers who had violated tax laws in New York City. The 17 tax preparers who violated tax laws have diverse qualifications and credentialing. The 17 tax preparers provided insights on how their training and education can improve their skills and competence and overall reduce tax preparation errors. Three contemporary theories of ethics --- "(virtue, discourse, and care ethics)," formed the underlying theoretical framework for this study. The purposively selected sample of 17 tax preparers who had violated tax laws was drawn from the New York City Department of Consumer Affairs List of Tax Preparers Violations for 2008-2011 using a maximum variation strategy. Data was collected through in-depth interviews and coded and organized according to the Research Questions. Data analysis and interpretation was guided by key elements of the theoretical framework, training, standards, and competence. The study revealed that tax preparers' greatest concern is with helping taxpayers comply with the tax laws while getting maximum refunds. To reduce errors, tax preparers rely on several strategies including checks and balances and the error feature in the software to minimize errors. Most tax preparers see affiliation to tax agencies as helping them to comply with federal, state, and local regulations. Overall, the 17 tax preparers who had violated tax laws highlighted the benefits of training to enhancing their skills and competence and reducing tax preparation errors.