On his social media platform, billionaire tech tycoon Elon Musk announced on Monday that he had shut down 18F, a government organization that worked on technological initiatives like the IRS Direct File program. This caused some misunderstanding on whether taxpayers could still use Direct File, although the free filing program is still accessible, at least for the upcoming tax year.
An individual with knowledge of the IRS workforce stated that the Direct File program was still collecting tax returns, despite Musk’s tweet suggesting that the group of employees had been fired. Because they were not permitted to speak to the media, the person spoke to The Associated Press in an anonymous manner.
The Direct File website and 18F’s website were both up and running as of Tuesday afternoon. However, the X account of the digital services agency was erased.
In 2025, Oregonians will have more alternatives for filing their state and federal taxes for free.
Some simply handle basic filings, while others have income restrictions. Here are some choices for you to consider.
In addition to asking all 50 states and the District of Columbia to assist taxpayers in completing their returns through the free electronic tax return filing system by 2025, the IRS stated last year that it will make the system permanent.
In March 2024, the Direct File experiment got underway. However, commercial tax preparation firms that have made billions by charging customers to use their software and have spent millions lobbying Congress have fiercely criticized the IRS for Direct File. Every year, the average American spends roughly $140 on tax preparation.
Free file options already exist, according to commercial tax preparation firms that have opposed the creation of the free file program.
Under specific income thresholds, a number of organizations, including private tax services, provide taxpayers with free online tax preparation assistance. The IRS website has online forms that may be filled out, but they are complex and require taxpayers to still determine their tax liability.
The IRS said in May of last year that the Direct File program would become permanent. Twelve states participated in the trial program last year, but today there are 25 states where it is available.
In certain areas, the program enables individuals with extremely basic W-2s to compute and file their forms with the IRS directly. In October, the IRS said that more over $90 million in refunds had been claimed by those who used the pilot program in 2024.
The current Treasury Secretary, Scott Bessent, pledged to continue the Direct File program at least through the 2025 tax season, which started on January 27, during his confirmation hearing on January 16.
An X user called 18F far left and remarked that Direct File places the government in charge of preparing people’s taxes. Musk was replying to this post.
Musk wrote, “That group has been deleted.”
— Barbara Ortutay and Fatima Hussein, Associated Press
