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Abstract:
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This thesis studied the factors influencing taxpayers’ intention to adopt free internet tax filing services, referred to by the Internal Revenue Service as free electronic tax filing (Free File). Focusing on how the digital divide can explain why there is a knowledge gap between internet users who utilize online programs and those who do not, this study drew upon previous diffusions of innovations research to examine whether relative advantage, compatibility with internet experience, complexity, and perceived risk influenced taxpayer’s intention to adopt Free File. Information was gathered through the administration of a survey to a convenience sample of internet users at 2 free income tax preparation events that took place on February 6th and February 13th, 2010 in Sacramento, California. Each participant was provided an informational brochure which explained what Free File is and participants were pre-screened to ensure they were internet users and eligible for Free File based on their annual household income (less than $56,000). The data was analyzed using multiple regression analysis and measured participants’ intention to adopt based on their perceptions of Free File. The results showed that relative advantage, compatibility with internet experience and perceived risk were significant predictors of intention to adopt. Perceived complexity was not a significant predictor. Almost half of the participants were not previously aware of Free File and the findings suggest that lack of awareness of the benefits of Free File is an inhibitor to adoption. Some of the limitations of the study were that participants were not able to test the program on a trial basis, only intention to adopt was measured (not actual adoption), and there are some theoretical issues with the statistical method used to perform the analysis (multiple regression). |
