"Preparing and submitting individual income tax returns costs taxpayers more than $91 billion a year, nearly half of which represents the opportunity cost of lost hours spent on tax compliance."
"According to the IRS, it takes taxpayers an average of 12 hours to prepare and file their return, with most paying an average of $290 for related costs."
"Collectively, Americans spend 1.95 billion hours and $49.76 billion to file their returns, highlighting the extensive time and financial resources dedicated to tax compliance."
"The IRS estimates that the total monetized time and out-of-pocket costs for taxpayers filing a Form 1040 for the 2025 tax year is $91.79 billion, excluding actual tax liabilities."
Tax compliance in the U.S. imposes a significant burden on individuals, costing over $91 billion annually. This figure includes the opportunity cost of time spent preparing and filing returns, averaging 12 hours per taxpayer. Americans collectively spend 1.95 billion hours and $49.76 billion on tax filing. The average taxpayer incurs $290 in related costs, such as software and preparers. The IRS estimates that the total cost for filing a Form 1040 for 2025 will be $91.79 billion, excluding actual tax liabilities and psychological costs.
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