Business taxpayers spend time and money--and experience
frustration--trying to comply with federal, state, and local tax
requirements. GAO refers to this as the taxpayer compliance burden.
GAO testified that the complexity of the Internal Revenue Service Code,
compounded by changes made to the Code, is the driving force behind
federal tax compliance burdens. Further, a reliable estimate of the
overall costs of tax compliance is not now available and would be costly
and in itself burdensome to obtain. Finally, reducing the compliance
burden will be a difficult undertaking because of the various policy
trade-offs, such as revenue and taxpayer equity, that must be made.
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