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clude burden associated with post-filing activi- Taxpayers filing Form 1040 are expected to Estimates of Taxpayer Burden ties, IRS operational data indicate that have an average burden of about 21.4 hours, The table below shows burden estimates as of electronically prepared and filed returns have with taxpayers filing Form 1040A or Form October 2009 for taxpayers filing a 2009 Form fewer arithmetic errors, implying lower post-fil- 1040EZ averaging about 8.0 hours. Within each 1040, 1040A, or 1040EZ tax return. Time spent ing burden. of these estimates there is significant variation in and out-of-pocket costs are presented separately. taxpayer activity. Similarly, tax preparation fees Time burden is broken out by taxpayer activity, Reported time and cost burdens are national vary extensively depending on the tax situation with recordkeeping representing the largest averages and do not necessarily reflect a “typi- of the taxpayer, the type of professional component. Out-of-pocket costs include any ex- cal” case. For instance, the estimated average preparer, and the geographic area. penses incurred by taxpayers to prepare and sub- time burden for all taxpayers filing a Form 1040, mit their tax returns. Examples include tax 1040A, or 1040EZ is 17.3 hours, with an aver- If you have comments concerning the time return preparation and submission fees, postage age cost of $225 per return. This average in- and cost estimates below, you can contact us at and photocopying costs, and tax preparation cludes all associated forms and schedules, across either one of the addresses shown under We software costs. While these estimates do not in- all preparation methods and taxpayer activities. Welcome Comments on Forms on page 97. Estimated Average Taxpayer Burden for Individuals by Activity The average time and costs required to complete and file Form 1040, Form 1040A, Form 1040EZ, their schedules, and accompanying forms will vary depending on individual circumstances. The estimated averages are: Average Time Burden (Hours) Average Primary Form Filed or Percentage Total Record Tax Form Form All Cost Type of Taxpayer of Returns Time Keeping Planning Completion Submission Other (Dollars) All taxpayers . . . . . . . . . . . 100 17.3 8.0 1.7 4.3 1.0 2.4 $225 Primary forms filed 1040 . . . . . . . . . . . . . 70 21.4 10.2 2.1 5.2 1.0 2.9 280 1040A & 1040EZ . . . . 30 8.0 2.7 0.8 2.3 0.8 1.3 96 Type of taxpayer Nonbusiness* . . . . . . . 69 10.7 4.1 1.1 3.0 0.8 1.7 129 Business* . . . . . . . . . 31 31.9 16.5 3.0 7.1 1.2 4.0 434 * You are considered a “business” filer if you file one or more of the following with Form 1040: Schedule C, C-EZ, E, or F or Form 2106 or 2106-EZ. You are considered a “nonbusiness” filer if you did not file any of those schedules or forms with Form 1040 or if you file Form 1040A or 1040EZ. - 98 -