Elon Musk, the billionaire tech mogul, caused a stir when he announced on his social media platform that he had “deleted” 18F, a government agency responsible for various technology projects, including the IRS’ Direct File program. This led to confusion among taxpayers about the availability of Direct File, but rest assured, the free filing program is still in place, at least for the upcoming tax season.
Despite Musk’s tweet suggesting the dissolution of the agency, a source familiar with the IRS staff confirmed that the Direct File program is still operational and accepting tax returns. The source, who preferred to remain anonymous while speaking to The Associated Press, emphasized that the program is continuing its services.
As of Monday evening, 18F’s website was still operational, as was the Direct File website. But the digital services agency’s X account was deleted.
Last year, the IRS made an announcement that the free electronic tax return filing system, including the Direct File program, would become a permanent fixture. Additionally, the IRS urged all 50 states and the District of Columbia to collaborate in assisting taxpayers with filing their returns through the program by 2025, ensuring continued support for taxpayers utilizing the service.
The Direct File trial began in March 2024. But the IRS has face intense blowback to Direct File from private tax preparation companies that have made billions from charging people to use their software and have spent millions lobbying Congress. The average American typically spends about $140 preparing their returns each year.
Commercial tax prep companies that have lobbied against development of the free file program say free file options already exist.
Several organizations, including private tax firms, offer free online tax preparation assistance to taxpayers under certain income limits. Fillable forms are available online on the IRS website, but they are complicated and taxpayers still have to calculate their tax liability.
Last May the IRS announced it would make the Direct File program permanent. It is now available in 25 states, up from 12 states that were part of last year’s pilot program.
The program allows people in some states with very simple W-2s to calculate and submit their returns directly to the IRS. Those using the pilot program in 2024 claimed more than $90 million in refunds, the IRS said in October.
During his confirmation hearing Jan. 16, Scott Bessent, now treasury secretary, committed to maintaining the Direct File program at least for the 2025 tax season, which began Jan. 27.
Musk was responding to a post by an X user who called 18F “far left” and mused that Direct File “puts the government in charge” of preparing people’s taxes.
“That group has been deleted,” Musk wrote.
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