Background: Government efforts to eliminate taxes to increase awareness and compliance of paying taxes face obstacles due to organizational behavior. The study aims to analyze inter-organizational commitment and organizational coordination to effectively implement a tax penalty elimination policy in the Indonesian context. The method used is a causal study through a survey of taxation public service institutions with an observation unit of employees related to taxation as many as 241

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... ata analysis using the SEM Amos procedure. The results showed that implementing an effective tax penalty elimination policy cannot be separated from commitment and coordination between organizations. The willingness of institutions to sacrifice will encourage and form the capacity to cooperate, and collective action taking becomes more targeted. Interactions indicating the existence of formal authority, division of duties and responsibilities, and functional relationships based on the effectiveness of policy implementation will determine the effectiveness of eliminating tax penalties. Conclusion: Interorganizational commitment and organizational coordination affect the effectiveness of the implementation of tax elimination. Theoretical implications are the importance of inter-organizational commitment and organizational coordination based on a common goal as a public institution developed to realize the effectiveness of policy implementation. Practically commitment and coordination become a framework for institutions to learn effective policies. Originality: Enriching knowledge of pragmatic approaches in tax policy using interdisciplinary public administration, psychology, and behavioral economics.