IRS Refund: Will A Partial US Government Shutdown Delay Refund To Taxpayers? Here's What We Know

(MENAFN- Live Mint) The Internal Revenue Service (IRS) officially opened tax filing on Monday, Jan. 26, signaling the beginning of the 2025–2026 tax season. However, concerns over refund status increased after the US government slipped into a partial shutdown on Saturday while awaiting House approval of a funding agreement President Donald Trump negotiated with Democrats following nationwide outrage over the killing of a US citizen Alex Pretti in Minneapolis by Border Patrol agents.

For many households, tax refunds represent the largest single payment they receive each year. The IRS stated that the average refund last year was nearly $3,200. This year, refunds could be even higher.

A recent analysis by financial services firm Piper Sandler suggests the typical refund may increase by about $1,000, bringing the average to roughly $4,200. Actual refund amounts, however, will vary depending on individual circumstances and the impact of Republicans '“big, beautiful” tax and spending legislation, according to CBS News.

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Tax refunds can be affected by a full or partial government shutdown.

If a funding lapse forces the IRS to scale back services, refunds are typically not issued during that period, according to the agency's guidance from the 2025 shutdown. An exception previously applied to individual taxpayers who filed error-free 1040 forms electronically, which could be processed automatically and paid through direct deposit.

During the shutdown in 2025, which spanned from 1 October to 14 November, the IRS suspended most of its core operations, despite expectations that existing funding would sustain the agency through the impasse. Within the first week, roughly half of IRS employees were furloughed, and services were scaled back after the agency exhausted its available funds.

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The April 15 tax filing deadline remains unchanged during a government shutdown unless the IRS explicitly announces otherwise.

During last year's shutdown, the IRS mentioned,“All tax deadlines remain in effect, including those covering individuals, corporations, partnerships and employers.”

How to track your payment online?

You can check the status of your tax refund using the IRS“Where's My Refund?” tool on IRS or through the IRS2Go mobile app.

Once the system is available, you'll need to provide your Social Security number or Individual Taxpayer Identification Number (ITIN), your filing status, and the exact refund amount listed on your tax return. After entering the required information, submit the details to access your refund status.

The refund tracker will display one of three updates.“Return received” means the IRS has successfully received your tax return.“Refund approved” indicates your return has been processed and your refund is scheduled for payment.“Refund sent” confirms the IRS has issued the refund, though it may take a few additional days for your bank to post the deposit to your account.

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