WASHINGTON — On Monday, the billionaire tech entrepreneur tweeted that he had “deleted” 18F, a government agency involved in projects like the IRS’ Direct File program. This caused confusion regarding Direct File’s availability, but the free filing program remains accessible, at least for the upcoming tax season.
Although Musk’s tweet suggested the team’s elimination, a source familiar with the IRS workforce confirmed that Direct File continues to process tax returns. The source, who spoke to The Associated Press anonymously due to lack of authorization, provided this information.
As of Monday evening, both 18F’s and Direct File’s websites were functioning normally. However, the digital services agency’s X account had been removed.
The IRS announced last year its intention to make the free electronic tax return filing system permanent, requesting assistance from all 50 states and the District of Columbia in facilitating taxpayer returns through the program in 2025.
The Direct File trial launched in March 2024. However, the IRS has faced significant opposition to Direct File from private tax preparation companies, which have profited billions from their software and spent millions lobbying Congress. The average American typically spends about $140 annually on tax preparation.
Commercial tax preparation companies that lobbied against the free file program contend that free file options already exist.
Several organizations, including private tax firms, offer free online tax preparation assistance to taxpayers meeting specific income requirements. The IRS website provides fillable forms, but these are complex, requiring taxpayers to calculate their tax liability independently.
Last May, the IRS announced the permanent implementation of the Direct File program. Currently available in 25 states, it expanded from the 12 states included in last year’s pilot program.
The program enables individuals in select states with straightforward W-2s to compute and submit their returns directly to the IRS. The IRS reported in October that users of the 2024 pilot program claimed over $90 million in refunds.
During his January 16 confirmation hearing, Scott Bessent, now Treasury Secretary, pledged to maintain the Direct File program at least through the 2025 tax season, which began January 27.
Musk responded to an X user who labeled 18F as “far left” and suggested Direct File places the government in charge of tax preparation. Musk stated, “That group has been deleted.”