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).

Administrative Costs

These are expenses associated with the day-to-day operations of a business or organization, including clerical, administrative, and managerial activities.

Tax

An obligatory fiscal payment or alternative form of assessment charged by a governmental body on taxpayers, intended to support governmental budgeting and diverse public spending.