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Internal Revenue Service

Can the government make filing taxes online easier? A free IRS-run system is being studied.

Medora Lee
USA TODAY
  • The IRS was given $15 million to study whether it might develop and run a free tax filing system.
  • A free IRS-run system could save taxpayers time and money spent on filing taxes and be more secure..
  • Critics say Americans don't want the tax collector to also do their taxes.

Everyone dreads tax season because completing and filing your taxes can be complicated, time-consuming and costly. In an effort to ease the burden, the Internal Revenue Service will resurrect the idea of providing all consumers with the option to file their taxes electronically for free using government-backed software. 

The Inflation Reduction Act, signed into law by President Joe Biden on Aug. 16, provided $15 million to the IRS to study how the IRS could implement such a program, how much it might cost and how Americans would view it. The report, which must include the input of an independent third party, is due to Congress within nine months of the bill’s passage. 

If the IRS determines it's feasible and worth its time and money to develop its own e-filing platform, all taxpayers, regardless of income level, could eventually file federal taxes for free online directly to the IRS.