If tax season wasn't already unpleasant enough, the 2026 tax cycle could soon be bogged down by a looming government shutdown.
The Internal Revenue Service officially began accepting tax returns on Monday, Jan. 26, marking the start of the 2025-2026 season. Many of the agency's major functions, however, including application processing and refunds, could be brought to a crawl or halt if lawmakers fail to reach an agreement to keep the federal government fully operational by the Friday, Jan. 30 deadline.
As Senate leaders butt heads over funding, 52% of Americans said they expect to receive a tax refund this year, and 54% said they plan to file early in hopes of seeing that return come to them faster, according to an Inuit Credit Karma survey. These hopes could be dashed, however, if a shutdown does ensue.
Here's what to know about taxes, including the impact on refunds, if the government once again enters a shutdown.
The federal government is again on the verge of a partial shutdown as Senate Democrats and Republicans face off over funding for the Department of Homeland Security (DHS). While some Democrats had previously signaled a willingness to pass a funding package before the Jan. 30 deadline, they changed course after federal immigration agents killed Minnesota ICU nurse Alex Pretti during a protest in Minneapolis on Jan. 24 in the second such deadly shooting this month.
