Evaluating Tax Preparers’ Perception Of The Tax Cuts And Jobs Act (TCJA) Through The Lens Of The Tax Misperception Theory

Author

Cari Valita Barnes, Prairie View A&M University

Date of Award

8-2025

Document Type

Dissertation

Degree Name

Doctor of Business Administration (DBA)

Degree Discipline

Business Administration

Abstract

The Tax Cuts and Jobs Act (TCJA) of 2017 represented one of the most extensive overhauls of the U.S. tax code in decades. While it is credited with reducing statutory tax burdens, the TCJA also introduced substantial complexity, which shaped tax preparers’ behavior and reshaped the tax preparation industry. Designed to stimulate economic growth through broad changes to both corporate and individual taxation, the TCJA’s impact on the profession cannot be understood without considering how preparers perceived the legislation. This study, therefore, evaluated the effects of the TCJA on tax preparers’ perceptions using the Tax Misperception Theory.

Results from Tobit regression analysis showed that perceptions were influenced primarily by personal factors such as state residency, gender, education, satisfaction with the U.S. tax system, and political ideology. Notably, experience, familiarity with the TCJA, and political party were not statistically significant. The insignificance of familiarity suggests that preparers’ judgments were not focused on the law’s content but were instead shaped by personal and ideological perspectives.

These findings indicate that even well-informed professionals are vulnerable to biases, poor framing, and unclear communication, which can lead to misperceptions of new tax laws. This is particularly striking given that most respondents had more than 20 years of tax preparation experience. The results point to the need for more effective training that not only updates technical knowledge but also communicates the goals and long-term effects of reforms. Despite the availability of continuing education and seminars, many tax preparers still perceived recent changes as negative for taxpayers.

This quantitative study applied Tax Misperception Theory to demonstrate how tax preparers form perceptions of tax reform. The theory suggests that preparers, like taxpayers, may develop negative views of tax law changes when personal factors such as demographics, education, experience, and political biases come into play. By analyzing survey responses from 151 members of the National Association of Enrolled Agents (NAEA), the study clarified the unintended professional and economic consequences of the TCJA. Overall, tax preparers reported generally favorable views of the law, though perceptions varied significantly depending on satisfaction with the tax system, political ideology, and related influences.

Keywords: tax misperception, taxpayer compliance, reported income, tax refunds, government revenue

Committee Chair/Advisor

Elvis Ndembe

Committee Member

Anish Menon

Committee Member

Erick Kitenge

Publisher

Prairie View A&M University

Rights

Date of Digitization

10/20/2025

Contributing Institution

J. B . Coleman Library

City of Publication

Prairie View

MIME Type

Application/PDF

Recommended Citation

Barnes, C. (2025). Evaluating Tax Preparers’ Perception Of The Tax Cuts And Jobs Act (TCJA) Through The Lens Of The Tax Misperception Theory. Retrieved from https://digitalcommons.pvamu.edu/pvamu-dissertations/126