The administrative costs of a tax include the costs incurred by the government in collecting the tax (such as the costs of operating the Internal Revenue Service)but exclude the costs incurred by individuals in paying the tax (such as accountants' fees).

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The administrative costs of a tax include both the costs incurred by the government in collecting the tax, such as the costs of operating the Internal Revenue Service, and the costs incurred by individuals and businesses in complying with the tax laws, such as accountants' fees and the time spent preparing tax returns.

The Administrative Costs of a Tax Include the Costs Incurred