The Report of the United States to the International Fiscal Association on the Costs of Tax Administration and Compliance

Abstract

This is a report prepared for the International Fiscal Association on the costs of tax administration and compliance in the United States. At the federal level, we present comprehensive data on administrative costs and review recent estimates of compliance costs. At the state level, we present new data on the administrative costs of state income taxes and general sales taxes, and review the very limited data on state level compliance costs. We also discuss the growing role of tax preparers, including new empirical results of our own. Finally, we review the recently enacted "Taxpayer Bill of Rights."