Taxation and Forensic Accounting: Informing Research and Practice

Abstract

We synthesize academic research, court cases, and Internal Revenue Service directives related to taxation and forensic accounting to improve the understanding of the extant literature on central issues. We emphasize areas where there is a need for future research opportunities that will contribute to the literature in taxation and forensic accounting. We identify research opportunities in taxation and forensic accounting in critical areas, such as (1) tax issues in business valuation; (2) indirect methods of reconstructing taxable income, including tax fraud and evasion; (3) corporate culture and ethical issues; (4) fraud in tax factors of performance, risk, and disclosure; and (5) internal control and tax assessment. Generally, we find research on taxation and forensic accounting to be scant. This space creates an emerging venue for future research.