How normative messaging increased tax compliance by 15%

In the United States alone, the cost of unpaid taxes is estimated at $1 trillion a year.³  Contributing factors to this loss include false information filed on tax documents and avoidance of payment. This financial loss is significant and decreases the funding available for public services such as healthcare and education. In the UK, the Behavioural Insights Team (BIT) ran an experiment in the interest of increasing tax compliance. They found that a higher proportion of individuals paid their owing tax amounts when location-specific normative messages were added to tax reminder letters. The letters were more successful the more specific they were to a recipient's location, with the most successful letters increasing tax-compliance by 15% compared to letters without normative messages.