Despite Musk claims to have closed it down, IRS reminds New Jersey taxpayers that free IRS DirectFile remains an option

WASHINGTON (SBN) — Despite tweets by billionaire Elon Musk suggesting that he had shut down a free tax filing tool, the Internal Revenue Service issued a news release today reminding taxpayers in New Jersey that they can file their taxes “quickly, easily and for free directly with the agency” using IRS Direct File.

Musk issued a tweet on his X platform Friday suggesting that the group that developed the online filing software for the IRS had been “deleted,” leading many to wonder if the direct filing option was also being removed. 

However, the IRS confirmed that the service remains available. The announcement today indicated that the web-based service, available in English and Spanish, continues to offer guided help for preparing and filing a federal tax return from a smartphone, tablet or computer.

Direct File does not replace existing filing options like tax professionals, IRS Free File, free return preparation sites, commercial software or authorized e-file providers, the IRS says. And the software is only available to taxpayers in 25 states.  State officials in the remaining states declined to participate in the program, which requires state cooperation because of the interlocking nature of federal and state tax calculations, an IRS spokesman explained.

The IRS says customer service representatives staffing the Direct File support function can provide technical support and provide basic clarification of tax law related to the scope of Direct File.

Although the deadline to file a 2024 tax return and pay any tax owed is April 15, 2025, Direct File will be open until Oct. 15, 2025, for people who may need additional time to file.

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