Archival research suggests that nonprofit organizations are inaccurately reporting significant asset diversions on IRS Form 990. This suggests that information reported on Form 990, which is relied on by nonprofit stakeholders, may be misleading. As a result, this behavioral study investigates three possible causes for the under-reporting of significant diversions of assets, including reading the Form 990 instructions, how the threshold for reporting is met, and the threat of outside detection of the theft. Our findings suggest that reading the instructions for Form 990, where the IRS’s definition of a significant diversion of assets can be found, positively and significantly influences disclosure of an asset diversion. We also examine press release reporting of a significant diversion of assets, as nonprofits may try to get ahead of the disclosure on Form 990. We find that risk of detection of the theft is a significant predictor of press release disclosure.
The online homework manager (OHM) and the intelligent tutoring system (ITS) are two supplemental teaching tools available for accounting educators' use in the introductory financial accounting course. While research related to these systems is limited, prior studies find a tenuous performance advantage related to their use. To advance the literature in this area, this paper evaluates the performance benefit related to an OHM and an ITS, each employed independently as an additional study aid during the first course unit in one of two sections of the introductory financial accounting course. A third section used paper-and-pencil only and served as a control group. Results of tests on several performance measures did not identify a learning advantage associated with either the OHM or the ITS. Nor was a learning advantage identified when this study's results were compared to exam results from 14 previous semesters. Implications for accounting educators and future research directions are discussed.
Taxpayers engage in activities for both tax and nontax reasons. Some of these undertakings are geared to earn a profit. Other activities provide personal pleasure and recreation. Regardless of the activity type, expenses are incurred and can be substantial. Depending on the type of engagement, profit may or may not be achieved. Naturally, many of these pursuits are undertaken for a number of consecutive years. Because of the tax benefits these activities possess, this issue remains highly litigated and closely scrutinized by the Internal Revenue Service. This study investigates the guidance delineated by the Service and creates a model of the significant variables that affect the judiciary’s decision-making. Backwards stepwise logistic regression is used to create the model. Chi-square is also used to determine statistical significance between the decision rendered and judge’s gender. Also, political affiliation of the judge is examined. The one variable (manner in which the taxpayer carries on an activity) model created correctly classifies 96.3% of the decisions made in the U.S. Tax Court. Additionally, a statistically significant difference is found between male and female judges. However, no difference is found based on the political affiliation of the judge.
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