Individual Tax Compliance and Complexity

The full cost of a tax system is more than simply the amount of tax paid. It also includes the cost of tax planning and paperwork. Economists call these “tax compliance” costs, and the IRS estimates Americans spend 6.6 billion hours per year filling out tax forms—including 1.6 billion hours on the 1040 form alone.


Related Articles

Spain’s Race to the Bottom in the International Tax Competitiveness Index

November 4, 2022

A Flat Tax in Wisconsin Can Deliver Tax Relief for Everyone

November 1, 2022

Colombia Is in Urgent Need of Pro-Growth Comprehensive Tax Reform

October 26, 2022

2023 State Business Tax Climate Index

October 25, 2022

International Tax Competitiveness Index 2022

October 17, 2022

Tax Treatment of Social Security Benefits Remains a Confusing Matter for Taxpayers

October 13, 2022

Tax Hike Proposals Live on Despite Being Dropped in the Inflation Reduction Act

October 10, 2022

Impact of Italian Elections on National Tax Policy and EU Fiscal Policy

September 28, 2022

Doing Tax Policy at the Ballot Is Not for the Faint of Heart

September 22, 2022

Massachusetts’ Graduated Income Tax Amendment Threatens the Commonwealth’s Economic Transformation

September 13, 2022

Idaho to Consider Flat Income Tax in Special Session

September 1, 2022

Missouri Should Consider Flat Income Tax in Special Session

August 31, 2022

IRS Is Raising More with Less, But New Funding Misses the Mark

August 29, 2022

States That Might Tax Student Loan Debt Cancellation

August 25, 2022

Inconsistent Tax Treatment of Student Loan Debt Forgiveness Creates Confusion

August 24, 2022

The Tax Compliance Costs of IRS Regulations

August 23, 2022

How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act

August 17, 2022

Japan’s Tax and Benefit System for Working Parents Isn’t Working

August 16, 2022

Australia’s Tax and Benefit System Might Deter Working Parents from Advancing in Their Careers

August 3, 2022

Indiana Should Use Surplus to Expedite Rate Cuts, Index Exemptions for Inflation

July 29, 2022