TY - JOUR
T1 - Demand for tax-preparation services
T2 - An exploratory examination of client versus tax-preparer expectation gaps
AU - Stephenson, Teresa
AU - Fleischman, Gary
AU - Peterson, Mark
N1 - Publisher Copyright:
Copyright © by Emerald Publishing Limited All rights of reproduction in any form reserved.
PY - 2017
Y1 - 2017
N2 - This research explores the expectation gap between tax clients' motivations to hire tax preparers versus tax preparers' perceptions of those client motivations. The study builds on limited previous research by examining preparers primarily from local firms rather than focusing solely on large international firms. The Gaps Model of Service Quality provides the theoretical lens for the paper. We employ the recently developed Taxpayer Motivation Scale (TMS) to measure four client motivations to hire a preparer: (1) saving money, (2) saving time, (3) legal compliance, and (4) protection from the IRS. We measure expectation gaps for those four motivations using matched tax preparer-tax client dyads. We employ statistical sub-group analyses to investigate the effects of both clients' and preparers' demographic characteristics that influence taxexpectation gaps. Results suggest client gender plays a noteworthy role in predicting many of the gaps. In addition, complexity of tax returns, children in the home, and client perceptions of tax-preparer advocacy help explain gaps. Finally, female preparers appear to be relatively more sensitive to client needs. We conclude that tax preparers need to (1) better understand their clients' motivations for hiring them and (2) reexamine marketing efforts to educate clients about preparer credentials and potential strategy options for tax preparation.
AB - This research explores the expectation gap between tax clients' motivations to hire tax preparers versus tax preparers' perceptions of those client motivations. The study builds on limited previous research by examining preparers primarily from local firms rather than focusing solely on large international firms. The Gaps Model of Service Quality provides the theoretical lens for the paper. We employ the recently developed Taxpayer Motivation Scale (TMS) to measure four client motivations to hire a preparer: (1) saving money, (2) saving time, (3) legal compliance, and (4) protection from the IRS. We measure expectation gaps for those four motivations using matched tax preparer-tax client dyads. We employ statistical sub-group analyses to investigate the effects of both clients' and preparers' demographic characteristics that influence taxexpectation gaps. Results suggest client gender plays a noteworthy role in predicting many of the gaps. In addition, complexity of tax returns, children in the home, and client perceptions of tax-preparer advocacy help explain gaps. Finally, female preparers appear to be relatively more sensitive to client needs. We conclude that tax preparers need to (1) better understand their clients' motivations for hiring them and (2) reexamine marketing efforts to educate clients about preparer credentials and potential strategy options for tax preparation.
KW - Gaps Model of Service Quality
KW - Perceptions of tax-preparer advocacy
KW - Tax client expectations
KW - Tax clients
KW - Tax preparation expectation gaps
KW - Tax preparers
KW - Tax-preparer perceptions
KW - Taxpayer Motivation Scale (TMS)
UR - http://www.scopus.com/inward/record.url?scp=85029720708&partnerID=8YFLogxK
U2 - 10.1108/S1058-749720170000024005
DO - 10.1108/S1058-749720170000024005
M3 - Article
AN - SCOPUS:85029720708
VL - 24
SP - 199
EP - 233
JO - Advances in Taxation
JF - Advances in Taxation
SN - 1058-7497
ER -