Skip to main content
Tags: irs | funding | government | shutdown | congress | taxes | disruptions

IRS Shutdown Threat Could Snarl Early Tax Season

By    |   Tuesday, 27 January 2026 09:39 PM EST

A potential partial federal government shutdown starting Saturday, Jan. 31, could disrupt Internal Revenue Service operations just days after the agency opened the 2026 tax filing season, raising the risk of slower refunds and reduced taxpayer assistance if Congress misses a midnight Friday funding deadline.

The House last week passed a package that includes H.R. 7148, the Consolidated Appropriations Act, 2026, and a separate Department of Homeland Security funding bill, H.R. 7147, but Senate Republicans need Democrat votes to advance the measures under Senate rules.

Senate Minority Leader Chuck Schumer, D-N.Y., and other Democrats have said they will not support the DHS portion as written after the fatal shootings of two U.S. citizens in Minneapolis during federal immigration enforcement operations.

The standoff has put the government on track for a partial shutdown if Congress does not act by the Jan. 30 deadline.

Associated Press reporting has identified the two people killed in Minneapolis as Renee Nicole Macklin Good and Alex Pretti.

The deaths have intensified scrutiny of immigration enforcement and spilled into the funding fight, complicating prospects for a deal before the deadline.

Even if some agencies remain funded, the IRS could face disruptions if Treasury funding lapses.

During the last lapse in appropriations, the IRS said refunds were generally not issued, with one key exception: refunds for electronically filed, error-free Form 1040 returns that could be automatically processed and deposited directly.

The agency also said walk-in Taxpayer Assistance Centers were closed and most appointments were canceled, while tax filing and payment deadlines still applied.

The IRS opened the 2026 filing season on Jan. 26 and said it expects about 164 million individual returns for tax year 2025 ahead of the April 15 deadline.

The agency has said new provisions tied to the One Big Beautiful Bill Act could affect taxes, credits, and deductions, which administration officials and outside analysts have linked to the prospect of larger refunds for some filers.

In a Hill report, tax attorney Adam Brewer said taxpayers should file electronically and double-check direct deposit information to reduce the chance they will need live IRS help if service levels shrink.

"Whenever possible, taxpayers should file electronically, make sure they enter their bank information accurately so they receive their income tax refund (or can submit payment) timely, and hope they don't have any issues that would require getting an actual IRS employee on the phone," Brewer said.

The Associated Press contributed to this report.

Jim Thomas

Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.

© 2026 Newsmax. All rights reserved.


Newsfront
A potential partial government shutdown beginning Saturday could disrupt IRS operations early in the 2026 tax season, risking slower refunds and reduced taxpayer assistance if Congress misses a Friday midnight funding deadline.
irs, funding, government, shutdown, congress, taxes, disruptions, refunds, chuck schumer
407
2026-39-27
Tuesday, 27 January 2026 09:39 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the Newsmax App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved