Tax simplification supporters have long campaigned for a free, government-run tax e-filing system.
The Inflation Reduction Act signed into law by President Biden on Tuesday granted $80 billion in funding for the agency.
Including $15 million to prepare a report on such a system.
While the bulk of the $80 billion in extra funding for the IRS is spread out over the next decade.
The agency has just approximately a year to complete its e-filing report.
In particular, the agency must determine the feasibility of an online filing system in terms of time and money.