The IRS could change the way Americans file their taxes
President Biden signed The Inflation Reduction Act which is now law from Tuesday.
Under this law the US government provided $80 billion in funding for the IRS including $15 million to deliver a report for free.
But the agency is on a tight deadline to deliver.
The agency has only about a year to turn in its e-filing report.
The agency has to figure out how much an online filing system would cost, the design of the system and how taxpayers would feel about using one.
Tax experts say the system could take two basic forms: one more conservative in scope and one more far-reaching.
The more conservative option would be a standardized government version of popular commercial software from companies like Intuit, H&R Block and TaxACT that prompts users to fill out a digital tax return.
In its agreement with commercial providers, the IRS signed a noncompete clause promising not to make its own free software tool