The IRS Could Be On The Verge Of Changing The Way Americans File Their Taxes

By The Hill
Posted on 08/22/22 | News Source: The Hill

The IRS could be on the cusp of revolutionizing the way that Americans file their taxes.  

The Inflation Reduction Act signed into law by President Biden on Tuesday provided $80 billion in funding for the agency, including $15 million to deliver a report on a free, government-run tax e-filing system that tax simplification advocates have long argued for.  

But the agency is on a tight deadline to deliver.  

While most of the $80 billion for the IRS in the new legislative package goes out over the next decade, the agency has only about a year to turn in its e-filing report.  

Specifically, 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.