Complex Tax Compliance Rules Cost Americans $546 Billion Yearly

‘One factor behind the complexity and confusion associated with tax compliance is the sheer size of the tax code,’ said the National Taxpayers Union Foundation.

Tax forms from previous years are displayed at Latino Taxes in Oakland, Calif., on April 10, 2007. Justin Sullivan/Getty Images

Compliance with tax rules in the United States costs the country more than half a trillion dollars annually as taxpayers attempt to follow the onerous regulations, according to a recent report by the nonprofit Tax Foundation.

This year, Americans are expected to spend more than 7.9 billion hours complying with IRS filing and reporting requirements, the Tax Foundation stated in an Aug. 6 report.