The Compliance Cost of the U.S. Individual Income Tax System

43 Pages Posted: 6 Jul 2004

See all articles by Joel B. Slemrod

Joel B. Slemrod

University of Michigan, Stephen M. Ross School of Business; National Bureau of Economic Research (NBER)

Nikki Sorum

Independent

Date Written: July 1984

Abstract

This paper uses evidence from a survey of Minnesota taxpayers to estimate the magnitude and demographic patterns of the compliance cost of filing federal and state income tax returns. It concludes that in 1982 this cost was between $17 and $27 billion, or from five to seven percent of the revenue raised by the federal and state income tax systems combined. About two billion hours of taxpayer time were spent on filing tax returns, and about $3 billion was spent on professional tax assistance.

Suggested Citation

Slemrod, Joel B. and Sorum, Nikki, The Compliance Cost of the U.S. Individual Income Tax System (July 1984). NBER Working Paper No. w1401. Available at SSRN: https://ssrn.com/abstract=327122

Joel B. Slemrod (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Room R5396
Ann Arbor, MI 48109-1234
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734-936-3914 (Phone)
734-763-4032 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Nikki Sorum

Independent

No Address Available

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