WASHINGTON (AP) — Mia Francis, a 22-year-old barista from Boston, used a free government tax program to independently file her taxes for the first time this year. She found it user-friendly as it automated much of the process.
Francis stated that it took her 45 minutes to complete her taxes using the , an online tax filing system that the IRS permanently implemented last year and has been launched in 25 states.
Francis anticipates a $530 tax refund. She added that she saved money by not using a commercial tax preparation service and plans to use the refund for a trip to Amsterdam this year. “That money will go a long way,” she noted.
Despite its popularity, the IRS Direct File’s future is uncertain as Elon Musk and the Department of Government Efficiency (DOGE) work to streamline the federal bureaucracy. The program remains available before the April 15 tax deadline. Treasury Secretary Scott Bessent pledged to maintain it, at least for the current tax season, during his confirmation hearing in January.
Neither the IRS nor DOGE responded to the Associated Press’s requests for comments on their plans for Direct File. A Republican tax expert stated that the IRS never received congressional authorization to establish Direct File. Republican legislators and commercial tax preparation companies argue that the program is a waste of funds because existing free filing programs are already available, although they can be difficult to navigate.
Direct File was introduced as a pilot program in 2024 after the IRS was tasked with exploring the creation of a “direct file” system using funds from the Inflation Reduction Act, which was signed into law by President Joe Biden in 2022. The agency announced in May that the program would become permanent.
The IRS processed 140,803 returns filed through Direct File in the 12 states where it was available last tax season. This year, it has expanded to half the country. The number of taxpayers who have used Direct File this year is currently unknown.
Merici Vinton, a key architect of Direct File from the U.S. Digital Service, emphasized the program’s ease of use and accessibility. She described it as “a great example of how people should interact with the government in the 21st century.”
“We effectively launched a startup in the IRS,” she explained. “It was built by an in-house product team, in an iterative manner, and we ship updates to the software to improve user experience in real time based on feedback. If we continue to invest in it, both taxpayers and the IRS can benefit.”
Musk posted on his social media platform last month that he had “deleted” 18F, a government agency involved in technology projects such as the IRS’s Direct File program. This caused confusion about the program’s continued availability. However, sources within the IRS have indicated to the AP that no decision has been made regarding the program’s future.
Former IRS Commissioner Daniel Werfel, who oversaw the program’s rollout, suggested that Treasury officials evaluating the program’s future should consider “the voice of the taxpayers.”
“My reflection is that taxpayers are in very different situations and have very different preferences for how they want to file,” he said. “Those whose preference is to file electronically direct with the IRS for free, it’s a good option to have on the menu. But it should not replace other options.”
Derrick Plummer, a spokesperson for Intuit, a leading commercial tax preparation company, stated that free tax preparation options existed long before Direct File.
“IRS Direct File is a solution in search of a problem, a waste of taxpayer dollars and a drain on critical IRS resources,” he argued. A June 2024 report by the Treasury Inspector General for Tax Administration estimated Direct File’s annual costs could range from $64 million to $249 million.
“The IRS should focus on its core mission including data privacy and customer service while policymakers in Washington focus on simplifying the tax code,” Plummer added.
However, some taxpayers, like Aquiel Warner, 31, from Austin, Texas, prefer to avoid commercial tax preparation software.
Warner filed her taxes in 10 minutes using Direct File on her phone, utilizing an IRS chatbot. She appreciates the program’s convenience, pre-filled forms, and free filing. Despite data privacy concerns regarding government access, with DOGE reportedly having access to some IRS internal systems, she feels more secure using the IRS than commercial services.
“I don’t want to be a product. I don’t want my information sold when I file my taxes,” she said. “I have to file my taxes, and I don’t want to be put in a situation where, in order to file my taxes, I have to pay to get the help I need because I’m not a professional tax preparer.”
Grover Norquist, president of Americans for Tax Reform, claimed that the IRS never received explicit congressional authorization to create the Direct File system.
“It really doesn’t matter if it’s a good idea. It was done illegally,” he asserted, calling on Congress and the Justice Department to investigate the alleged unauthorized spending on Direct File’s creation.
Democratic lawmakers requested Bessent and IRS commissioner nominee Billy Long in January to preserve the program. They stated in a letter that “ending Direct File would hurt everyday Americans.” Long has not yet had a nomination hearing.
In the meantime, Musk and his team of programmers could either leverage their technical skills to enhance the program or utilize them to eliminate it.
Werfel hopes the agency will maintain the program, stating, “It’s a big country with a lot of taxpayers with a lot of different preferences.”
Francis, the barista from Boston, shares this hope.
”There are a lot of young people like me who are working and figuring out how to file their taxes — this just makes it faster and easier,” she said.