Template-Type: ReDIF-Article 1.0 Author-Name: Morgan Daly Author-Name: Mary Jane Lenard Author-Name: Lisa Monahan Title: TO SPEND OR NOT TO SPEND: AN INVESTIGATION OF CONSUMER BEHAVIORS RELATED TO TAX REFUNDS Abstract: This research is focused on exploring consumer behavior in relation to federal tax refunds. We constructed a survey questionnaire to examine the choices made by consumers; the patterns focused on spending vs. saving behaviors, types of purchases (luxury vs. necessity), and taxpayer confidence levels in tax preparation. The objective of the research is to determine the characteristics of consumers who spend (save) their tax refund, as well as gauge levels of inherent consumer responsibility. We recruited participants via MTurk (Amazon Mechanical Turk) in which participants self-select and complete the survey for compensation. This research used a scenario-based approach for data collection, in which we instructed consumers to respond as if they had received a $3,000 refund. Results indicate that consumers who describe themselves as tightwads save more of their refund and consider their use of the refund as more responsible than consumers who describe themselves as spendthrifts. Tightwads also perceive that they have more knowledge of tax rules and are less confused about tax reporting than spendthrifts. Our paper contributes to the literature on tax policy by providing insight into the consumer perspective on tax rules and response to tax refunds. Classification-JEL: H24, G51, M30, Z18 Keywords: Tax Refunds, Tax Policy, Saving, Consumer Behavior Journal: Accounting & Taxation Pages: 1-14 Volume: 14 Issue: 1 Year: 2022 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v14n1-2022/AT-V14N1-2022-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:14:y:2022:i:1:p:1-14 Template-Type: ReDIF-Article 1.0 Author-Name: Salem Boumediene Author-Name: Fatma Ezzahra Abdallah Author-Name: Salma Ben Moussa Author-Name: Emna Boumediene Title: INTERNAL CORPORATE GOVERNANCE MECHANISMS AND RISK DISCLOSURE: EVIDENCE FROM TUNISIA Abstract: Voluntary risk disclosure in the annual reports is increasingly becoming a more common corporate practice. This study aims to examine the impact of internal corporate governance mechanisms of Tunisian companies, on the quality and extent of risk disclosure. Using content analysis followed by a multivariate analysis of a sample of 170 company-year observations from 2011 to 2015, the results indicate that institutional, foreign, and government ownership negatively affect the extent of risk disclosure. However, ownership concentration has a positive effect on the extent of corporate risk disclosure. We also find that audit committee’s size has a positive effect on corporate risk disclosure. Finally, we show that board size has a positive effect on corporate risk disclosure, while the presence of woman within the board negatively affects the extent of corporate risk disclosure. Moreover, our analysis reveals that Tunisian companies tend to disclose mainly non-financial risk in their annual reports. Overall, the research provides a new channel through which internal corporate governance mechanisms impact financial reporting. This study contributes to and extends the literature on corporate risk by offering a new perspective on emerging countries’ disclosure of risk. Classification-JEL: M42, G34, C23 Keywords: Corporate Risk Disclosure, Ownership Structure, Board of Directors, Audit Committee Journal: Accounting & Taxation Pages: 15-30 Volume: 14 Issue: 1 Year: 2022 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v14n1-2022/AT-V14N1-2022-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:14:y:2022:i:1:p:15-30 Template-Type: ReDIF-Article 1.0 Author-Name: Mingjun Zhou Title: GILTI INCOME AND FINANCIAL REPORTING: AN ANALYSIS OF THE 10-K DISCLOSURES BY S&P 500 FIRMS FOLLOWING THE 2017 TAX REFORM Abstract: The 2017 tax reform introduced a minimum tax on “global intangible low-taxed income” (GILTI). Current research has shed limited light on how firms report GILTI-related items on their financial statements. This study examines the 10-K disclosures of S&P 500 firms after the 2017 tax reform (Tax Cut and Jobs Act, or TCJA) and focuses on the differences in their financial reporting choices (period cost vs. deferred method) for GILTI. Most of the firms that chose the deferred tax method are concentrated in the subsectors of pharmaceutical, biotechnology, and software technology. Ten firms reported a total of $24.77 billion of GILTI-related deferred tax liability (and potential “cookie jar” for future earnings) after the passage of TCJA in December 2017. For these firms, GILTI-related items constitute a substantial portion of the total deferred tax liabilities and pre-tax income. The results also show that firms in the industrial sector are in general less likely to be affected by the GILTI regime than firms in the sectors with high-return intangible assets. This is consistent with the legislative intent for the GILTI tax. Classification-JEL: M41, M48 Keywords: Accounting Policy, Deferred Tax Liability, Global Intangible Low-Taxed Income, Tax Cut and Jobs Act Journal: Accounting & Taxation Pages: 31-44 Volume: 14 Issue: 1 Year: 2022 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v14n1-2022/AT-V14N1-2022-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:14:y:2022:i:1:p:31-44 Template-Type: ReDIF-Article 1.0 Author-Name: Dorothy Thompson Author-Name: Darlene Booth-Bell Title: REMOTE WORK AND STATE TAX COMPLEXITY: THE HIGH COST TO INTERSTATE EDUCATORS Abstract: Remote work appears to be an apparent and growing trend. In particular, as higher education continues to expand its remote learning delivery models, the number of academic workers who provide instruction remotely also increases. In addition to the current remote faculty, 518 remote higher education positions are available (HEJ 2021) to teach the 6.9 million students enrolled in distance education courses (Ruiz & Sun, 2021). Consequently, payroll services must become well-versed in staying current in a complex tangle of state tax laws and requirements. This paper examines individual knowledge of state income tax obligations by remote interstate employees and their desire to obtain a refund of the overpayment of those taxes. Based on asynchronous interviews of 58 faculty members at a single institution, our results suggest that most do not understand state income tax regulations. Employees view taxes as unfair compared to their level of tax knowledge (Harris, 1989). The institution deducts the tax from earnings, and the employee is burdened with requesting a refund. Just as important, it can be argued that tax professionals who complete the tax returns of these employees lack knowledge and understanding of the nuances of the state income tax system as well. Classification-JEL: H24, J61 Keywords: Personal Income Tax, Overtaxed, Tax Compliance, Tax Complexity, Remote Workers, State Taxes Journal: Accounting & Taxation Pages: 45-55 Volume: 14 Issue: 1 Year: 2022 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v14n1-2022/AT-V14N1-2022-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:14:y:2022:i:1:p:45-55 Template-Type: ReDIF-Article 1.0 Author-Name: Arianna Spina Pinello Author-Name: Ara Volkan Author-Name: Mark Arnone Author-Name: Jamie Lancellot Author-Name: Lana Luckey Title: PROFESSIONAL SKEPTICISM: STANDARDSETTERS’ RESPONSIVENESS TO STAKEHOLDER COMMENT LETTERS Abstract: Auditing standards direct auditors to exercise professional skepticism (PS) in all facets of an audit. However, until the 2020 revisions to both US and global auditing standards were issued, there were no clear definitions of or guidance on how PS can be demonstrated and documented. How to exercise PS was left to the individual auditor to decide. Ironically, the same regulatory bodies often criticized and, occasionally, took punitive action against auditors, citing a lack of PS. To close this expectation gap, both the International Ethics Standards Board for Accountants (IESBA) and the American Institute of Certified Public Accountants (AICPA) issued proposals to define, demonstrate, and appropriately apply PS. This paper provides an overview of both proposals, analyzes comment letters submitted by constituents at the exposure draft stage of the due process, and describes how and to what extent constituent input impacted the final standards issued in 2020. The results suggest that constituents generally supported both proposals. While the AICPA and IESBA incorporated some of the constituent input in their final standards, several major stakeholder recommendations were ignored. Stakeholder feedback overwhelmingly suggests that added guidance for the proper application of PS is needed, along with education and training programs. Classification-JEL: M42 Keywords: IESBA, AICPA, Professional Skepticism, Audit Engagements, Audit Standards Journal: Accounting & Taxation Pages: 57-74 Volume: 14 Issue: 1 Year: 2022 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v14n1-2022/AT-V14N1-2022-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:14:y:2022:i:1:p:57-74