Do normative appeals affect tax compliance? Evidence from a controlled experiment in Minnesota

This paper explores one part of a 1994 Minnesota Department of Revenue fiel d experiment designed to study the effectiveness of alternative enforcement strategies. Two letters containing different normative appeals were sent t o two large groups of taxpayers; a control group received no letter The imp act of the letters on voluntary compliance is measured by comparing the cha nge (for tax years 1994-93) in reported income and in taxes paid for treate d versus control taxpayers la difference-in-difference approach). We find l ittle evidence of an overall treatment effect. However, the letters do appe ar to impact the compliance behaviour of some groups of taxpayers.