Do taxpayers consider quality labels as a form of recommendation for good tax-preparation services? Evidence from Germany.

Quality labels are important measures for reducing the information asymmetry between principals and agents to enhance trust. However, little research is available on the effects of quality labels used in tax-preparation services from critical perspectives in accounting. The present research contributes to the field by addressing the underlying reasons for German taxpayers to consider quality labels for identifying good tax-preparation services. These contributions are based on a survey of 199 taxpayers in Germany. The results show that the intention to consider quality labels is mainly driven by taxpayers' attitude and trust in quality labels, perceived norms having some influence, and perceived behavioral control having no influence. Hence, we highlight that the reasoned action approach is appropriate for this study, and aim to identify the relevant factors that influence taxpayers' intention to consider quality labels. The results contribute to a general understanding of the importance of quality labels for tax-preparation services in the context of accounting, organizations, and society. Both academia and practitioners can utilize these insights for further research and consultation on quality labels and tax-preparation services.