This testimony makes three main points about overstated deductions for real estate tax payments. First, for the most part individual taxpayers overstated their deductions for real estate tax payments by including nondeductible payments, such as user fees. Second, confusion over which payments were and were not deductible real estate taxes contributed to taxpayer noncompliance. Third, the Internal Revenue Service can improve compliance by simplifying tax documents and by redirecting its enforcement efforts and cooperating with state and local officials.