Threats of government shutdown increase after Minneapolis shooting
Congress is grappling with a partial government shutdown after complicated funding agreements in the wake of the shooting of Alex Preti in Minneapolis.
If tax season wasn’t already too unpleasant, the 2026 tax cycle could soon be mired in a quagmire by the looming government shutdown.
The Internal Revenue Service officially began accepting tax returns on Monday, January 26, marking the start of the 2025-2026 season. But if Congress does not reach an agreement to keep the federal government fully operational by the Friday, Jan. 30 deadline, many of the agency’s key functions, including application processing and refunds, could be stalled or stopped.
With Senate leadership at odds over funding, 52% of Americans say they expect to receive a tax refund this year, and 54% said they plan to file early in hopes of receiving their refund sooner, according to a survey by Inuit Credit Karma. But those hopes could be dashed if a shutdown actually occurs.
Here’s what you need to know about taxes, including the impact on your refund if the government shuts down again.
Another government shutdown?
The federal government is once again on the brink of a partial shutdown as Senate Democrats and Republicans battle over funding for the Department of Homeland Security (DHS). Some Democratic lawmakers had previously said they wanted to pass a funding measure by the Jan. 30 deadline, but reversed course after a federal immigration officer shot and killed Minnesota state intensive care unit nurse Alex Preti on Jan. 24, the second shooting this month during a protest in Minneapolis.
Senate Democrats have since called on Republicans to join them in rejecting a budget that would funnel more than $76 billion to ICE and Border Patrol, with Senate Minority Leader Chuck Schumer (D-N.Y.) saying Democrats do not support keeping the government completely open while funding DHS.
Senate Republicans and Democrats have until Friday, January 30th to pass a series of bills to avoid a partial government shutdown by Saturday, January 31st.
Will the IRS close during the shutdown?
The ability of the IRS to remain open during the shutdown depends on funding.
The IRS suspended most major functions during a partial shutdown in October 2025, even though it was expected to weather the impasse with allocated funds. The IRS furloughed about 50% of its employees and cut services within the first week as its financial resources dried up.
Automated e-filing and telephone calls were still in place. However, all in-person appointments were canceled, walk-in taxpayer assistance centers were closed, audits, applications, paperwork, and appeals were halted or delayed, and refunds were delayed.
Will tax deadlines change during the closure?
No, the April 15 tax filing deadline will not change due to the government shutdown unless otherwise specified.
The IRS said that during the 2025 closure period, “all tax deadlines remain in effect, including for individuals, corporations, partnerships, and employers.”
Will my tax refund be affected by the government shutdown?
Yes, your tax refund may be affected by a full or partial government shutdown.
If the IRS restricts services due to a lack of funds during a shutdown, no refunds will be issued during that time, according to the IRS page on 2025 closures. The previous exception was for individual taxpayers who electronically filed their 1040 forms without error, which could have been automatically processed and deposited directly.
Has the government ever been shut down during tax season?
The government has never been shut down during tax season, so a potential shutdown this week, when the 2026 tax filing season begins, could cause major disruption for the IRS.
However, at the onset of the COVID-19 pandemic in 2020, the Trump Administration, through the Treasury Department and IRS, extended the federal income tax filing and payment deadline for 2019 taxes from April 15, 2020 to July 15, 2020.
Additionally, the IRS issued Notice 2022-36, reducing penalties for most individuals and businesses that filed certain 2019 or 2020 returns late. To receive the relief, eligible tax returns had to be filed by September 30, 2022.
It’s unclear whether the Trump administration or the Internal Revenue Service will provide relief if the government shuts down. However, citizens can stay informed about the impact on their tax filing process by checking IRS.gov for the latest information.
Contributor: Jordan Green, Memphis Commercial Appeal
