The IRS tax season is here, and so is the uncertainty around refunds. This comes as Washington is edging closer to a potential government shutdown, one that could disrupt IRS operations just as millions of Americans are preparing to file.
IRS dates and government shutdown
The Internal Revenue Service began accepting federal tax returns on Monday, January 26, officially opening the 2025–26 filing season. But with lawmakers facing a January 30 deadline to pass federal funding legislation, key IRS functions, including return processing and refunds, could be slowed or temporarily halted if the government shuts down.
The timing is especially concerning for taxpayers eager for refunds. According to an Intuit Credit Karma survey, 52% of Americans expect to receive a refund this year, and 54% plan to file early in hopes of getting their money sooner. A shutdown could derail those plans.
Why a shutdown is back on the table
Congress is once again staring down the possibility of a partial shutdown as Senate Democrats and Republicans clash over funding, particularly for the Department of Homeland Security (DHS).
Some Democrats had initially indicated support for a stopgap funding measure, but shifted their stance after federal immigration agents fatally shot Minnesota ICU nurse Alex Pretti during a protest in Minneapolis.
{{/usCountry}}Some Democrats had initially indicated support for a stopgap funding measure, but shifted their stance after federal immigration agents fatally shot Minnesota ICU nurse Alex Pretti during a protest in Minneapolis.
{{/usCountry}}Senate Minority Leader Chuck Schumer said Democrats will not support legislation that keeps the government open while continuing DHS funding.
What happens to the IRS during a shutdown?
Whether the IRS remains fully operational during a shutdown depends on available funding. Recent history suggests disruptions are likely.
During the partial government shutdown in October 2025, the IRS initially attempted to continue operations but was forced to scale back within days. Roughly half of the agency’s workforce was furloughed once funding ran out, significantly reducing services.
At the time:
Automated e-filing and phone systems continued to operate
In-person appointments were canceled
Walk-in taxpayer assistance centers were closed
Audits, appeals, and paper return processing were paused or slowed
Refunds were delayed
Will tax refunds be delayed?
A shutdown can directly affect refunds. During the 2025 shutdown, the IRS confirmed that refunds were generally not issued while services were limited.
The exception applied to electronically filed individual returns (Form 1040) that were error-free and eligible for automated processing with direct deposit. Even then, delays were possible if systems or staffing were constrained.
Does a shutdown change the tax deadline?
No. A government shutdown does not automatically extend the tax filing deadline.
During the 2025 shutdown, the IRS stated clearly:
“All tax deadlines remain in effect, including those covering individuals, corporations, partnerships and employers.”
Unless the IRS or Treasury Department formally announces an extension, the April 15 deadline stands.
Has this happened before during tax season?
A shutdown overlapping with the start of tax season would be unprecedented. The federal government has not previously shut down while tax filing was actively underway.
Taxpayers concerned about potential delays should monitor official updates from the IRS, particularly on IRS.gov, where the agency posts real-time guidance during funding lapses. Until lawmakers reach a deal, uncertainty will remain, and filing early may not guarantee a fast refund if the government closes its doors.