Elon Musk, the billionaire entrepreneur, took to his social media platform on Monday to announce that he had “deleted” 18F, a governmental body involved in technology initiatives like the IRS’ Direct File program. This statement sparked uncertainty regarding the accessibility of Direct File for taxpayers, but it has been confirmed that the free filing service will indeed be available for the upcoming tax season.
Despite Musk’s remarks suggesting the disbandment of the agency, a source familiar with the IRS operations indicated anonymously that the Direct File program remains functional for tax return submissions. This individual communicated with the media under conditions of anonymity as they were not permitted to disclose information publicly.
By Monday evening, 18F’s official website continued to operate, and the Direct File portal was also accessible. However, the agency’s presence on X had been erased.
Last year, the IRS announced its decision to make the free electronic tax filing system a permanent service, collaborating with all states including the District of Columbia to facilitate tax returning via this program by 2025.
The Direct File trial launched in March 2024, yet it faced significant opposition from private tax preparation firms that profit immensely from their services. These companies have spent considerable resources lobbying against the new program, as the average American spends roughly $140 each year on tax preparation.
Tax preparation businesses argue that alternative free filing options are currently available. Several organizations, including private firms, provide complimentary online tax preparation aid to eligible individuals based on income thresholds. Although the IRS does offer fillable forms on its website, these can be quite complex, requiring taxpayers to independently determine their tax liabilities.
In May of last year, the IRS confirmed its commitment to establishing the Direct File program as a permanent fixture, extending its availability to 25 states, an increase from the 12 during last year’s pilot phase.
This program enables individuals with straightforward W-2 forms to directly calculate and file their taxes with the IRS. Those who participated in the pilot program in 2024 reported receiving over $90 million in refunds, according to an announcement made by the IRS in October.
During his confirmation hearing on January 16, Scott Bessent, currently serving as treasury secretary, assured that the Direct File program would be sustained for at least the 2025 tax season, which commenced on January 27.
Musk’s comments were reportedly in reaction to a post on X from a user who labeled 18F as “far left” and expressed concerns that Direct File “places the government in control” of tax preparations. Musk’s response succinctly stated, “That group has been deleted.”
