The US government could be forced to shut down again this weekend over the funding of the Department of Homeland Security. With the potential shutdown looming, it is expected to affect the ongoing IRS tax season and taxpayers. Let’s see how it will affect taxpayers and the ongoing tax season.
What can cause the IRS shutdown in 2026?
The US government is facing another partial government shutdown over ICE funding. IF the government does not solve the dispute over this funding by midnight on 30 January 2026, we will be facing another shutdown. The federal government needs to approve the funding for the government agencies, and they have already passed the legislation for many agencies.
The Democrats have opposed the immigration enforcement policies as they opposed the Department of Homeland Security funding from the package. The Republicans would need Democrats’ support to pass the bill, but it has become more difficult after Alex Pretti died in Minneapolis.
Now, the shutdown possibility can affect many government agencies’ functions, and many are wondering about the IRS functioning as tax season has begun. The shutdown can affect the IRS funding and its operations, as many employees may have to work without a salary if the shutdown happens.
How the IRS Shutdown Can Affect the Taxpayers?
In the current event of a possible shutdown, with the ongoing tax season, many are wondering how it will affect the taxpayers; let’s see how:
- The federal government was shut down recently for 43 days in 2025, where the IRS continued its activities, but the problem was faced in the physical assistant centres. So, if the shutdown happens this time, it would mostly affect the people who look for physical assistance.
- The IRS was short of staff due to the layoff earlier in the Trump administration, and now the shutdown would impact the functioning of the tax, especially for paper returns or taxpayer assistance offices.
- The federal government introduced the tax law changes in July 2025, and the IRS is implementing the new tax law. The shutdown can slow down the process and affect the taxpayers who need guidance.
- If the IRS funding gets affected due to the shutdown, the return and refund process can be affected.
- Many analysts say taxpayers who will e-file the returns and select direct deposit will not be affected by the shutdown; the error-free tax returns will process automatically.
What is the government doing to avoid a shutdown?
The government has to pass six bills before 30 January 2026 to keep 80% of the federal government operating. This covers major agencies like Homeland Security, Defense, Health & Human Services, etc.
The House has passed one funding package, but the Senate is stuck over the Department of Homeland Security funding. If the bill is not passed tonight, we can see another shutdown after the recent longest shutdown. The government is taking measures to avoid the shutdown, such as late-night sessions or temporary extensions.
On Thursday, the lawmakers found a way where they would decouple the Homeland Security funding from five other bills. The bill will provide funding by the end of the fiscal year on 30 September 2026, and the Department of Homeland Security will receive the short-term funding for two-weeks.
What should you do if the shutdown happens?
The current situation suggests we can expect a partial shutdown even with a new deal in the picture; hence, if you are a taxpayer, you should keep the following things in mind:
- You should electronically file your tax returns and try to file them early with direct deposit.
- You should monitor the IRS updates and check your tax returns or refund status frequently to know the status.
- You should use IRS tools and online services for any assistance and help with the tax return filing, then resorting for the physical assistance as the shutdown can affect it.
- With the shutdown in place, you can expect a slower response from the IRS, especially from officers; you should be prepared for this.
- Though the reports say it would not affect the electronic functions of the tax system, you should take precautions and file your tax return without any errors to have your tax refund process easily, and you do not need to contact the agency, as it can be hard during the shutdown.
- With the potential delays on the tax refund due to the shutdown, you should be prepared for it and plan your finances accordingly.
- Always check on the IRS resources or important announcements on Congress funding and the decision on shutdown to stay informed.
The IRS tax season began this Monday, and now the partial federal shutdown can impact the taxpayers, especially the physical services, paper returns, and physical assistance services, so be prepared and file your returns on time.