Again, Elon Musk has been stirring controversy through a cryptic social media post. On Monday, he said he “deleted” 18F, the government agency involved in the IRS Direct File program. His statement caused confusion as some wondered if the free tax-filing service was no longer available. However, the Direct File program remains operational despite what Musk said.
What is an IRS Direct File?
Direct File is a free, largely invisible tax filing program of the IRS. It lets taxpayers in a handful of states file electronically without using private tax software. The IRS unveiled the program in 2024. Commercial tax companies pushed back quickly against it. They charge Americans an average of $140 to prepare each tax return and have been lobbying against Direct File, partly because they fear losing business.
The IRS, however, declared last May that Direct File would be permanent. It increased from 12 states in 2024 to 25 states in 2025. The program is mostly for those with simple W-2 income, who can file their taxes directly with the IRS. In 2024, taxpayers using Direct File claimed over $90 million in refunds.
Musk’s Controversial Statement
Elon Musk comment was following a comment made by an X user who complained that Direct File is a government-controlled tool for tax preparation. In response to the criticism, Musk wrote, “That group has been deleted.”
This led many to believe that the IRS had shut down Direct File. However, sources within the IRS confirmed that the program remains active for the 2025 tax season. An anonymous IRS official reassured taxpayers that Direct File is still processing tax returns.
While Musk’s statement was vague, one notable change did occur. The official X account for 18F was deleted. However, its website remained online, along with the Direct File portal.
Why Is Direct File Controversial?
This bill challenges the multi-billion-dollar tax preparation industry. Companies like TurboTax and H&R Block have spent millions lobbying against it. They argue that free tax-filing options already exist and that the government should not compete with private businesses.
However, critics say there are free filing programs which are complicated and mostly have hidden charges. Many taxpayers unknowingly pay for services that should be tax free. The middle man is eliminated by Direct File, therefore, tax filings will be free and very simple.
Government Commitment to Direct File
On January 16, the Treasury Secretary, Scott Bessent, affirmed that the IRS would continue having Direct File in the 2025 tax filing season. Filing for the tax season commenced on January 27, 2025.
The IRS also continues to reach out to the remaining 50 states to help more Americans e-file their taxes without any additional fee.
Final Thoughts
Elon Musk “deleted” comment added unnecessary confusion to the tax season. However, the taxpayers should be aware that Direct File is still available. Whether its future will be debated, for now, Americans in 25 states can file their taxes for free—with or without Musk’s approval.
Lastly, Elon Musk take on IRS file caused a lot of debates and it will be interesting to see what future
