![]() Although the ability and incentive to avoid taxes are related to CIC assignment, we find that the IRS assigns firms primarily based on size and complexity. We first model the determinants of assignment to the program. This study uses a confidential data set of firms assigned to the Internal Revenue Service's Coordinated Industry Case (CIC) program to examine the effect of audit certainty on firms' tax reporting behavior. All opinions are those of the authors and do not reflect the views of the IRS. Statistical aggregates will be used so that a specific taxpayer cannot be identified from information supplied by the IRS. None of the confidential tax information received from the IRS will be disclosed in this treatise. The Internal Revenue Service (IRS) provided confidential tax information to Towery pursuant to provisions of the Internal Revenue Code that allow disclosure of information to a contractor to the extent necessary to perform a research contract for the IRS. ![]() We also thank John Miller and Barbara Hecimovich for providing information about the IRS Coordinated Industry Case (CIC) program. ![]() The authors appreciate helpful comments from Christine Cheng (discussant), Lisa De Simone, Danielle Higgins (discussant), Lillian Mills, Thomas Omer, Jeffrey Pittman, George Plesko (discussant), two anonymous referees, and workshop participants at the College of William & Mary, University of Houston, University of Kansas, University of Virginia McIntire School of Commerce, the 2014 American Accounting Association Annual Meeting, the 2015 IRS-TPC Research Conference, and the 2015 University of Illinois Symposium on Tax Research. ![]()
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