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Musk boasts he shut down free online tax program but it's still available

Billionaire tech mogul Elon Musk posted on X that he had eliminated 18F, a government group that developed the ‘Direct File’ IRS program so Americans could file their taxes for free

Ap
AP
Tuesday 04 February 2025 01:59 GMT
Donald Trump and his DOGE government ‘efficiency’ captain Elon Musk
Donald Trump and his DOGE government ‘efficiency’ captain Elon Musk (Getty/Reuters)

Doge government “efficiency” meister Elon Must declared Monday in a post on X that he had “deleted” a government group that created and supported an IRS “Direct File” program that Americans could use to file their taxes for free.

But the free filing program created by the “18F” group that Musk claimed was axed is still available – at least for the coming tax season.

Musk was responding to a message by another X user who called 18F “far left,” and claimed that Direct File “puts the government in charge” of preparing people's taxes.

“That group has been deleted,” Musk wrote.

While Musk’s post indicated that 18F had been eliminated, a source with knowledge of the IRS workforce said the Direct File program was still accepting tax returns.

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.

The IRS had announced last year that it would make the free electronic tax return filing system permanent and asked all 50 states and the District of Columbia to help taxpayers file their returns through the program in 2025. The Direct File trial began in March 2024.

The IRS has faced 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 to protect their businesses. 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 insist that other free file options already exist.

Several organizations, including private tax firms, offer free online tax preparation assistance to taxpayers whose income are under a certain level. Other forms beyond Direct File are also available online on the IRS website, but they can be complicated and taxpayers still have to calculate their tax liability.

The IRS Direct File program is currently available in 25 states. 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 late last year.

During his confirmation hearing Jan. 16, Scott Bessent, now treasury secretary and a found of the controversial Porject 2025, committed to maintaining the Direct File program at least for the 2025 tax season.

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