A new study out of the Tax Foundation estimates that complying with the federal income tax code during 2005 cost U.S. taxpayers about $265 billion.

Scott Hodge, president of the Tax Foundation and co-author of the study, said that figure amounts to about 22 cents in overhead costs for every dollar of income tax collected. For 2005, the $265 billion compliance burden represented over 6 billion hours spent by individuals, businesses and nonprofits complying with the federal income tax code.

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