The Economic Times

Will a partial government shutdown delay your IRS tax refund? Heres what Americans need to know

Will a partial government shutdown delay your IRS tax refund? Approximately 164 million taxpayers began filing on January 26, 2026, just days before the partial government shutdown. The IRS activated a contingency plan using Inflation Reduction Act reserves to keep operations fully staffed through February 7. Electronic filers with error-free returns can still expect 21-day direct deposits. However, paper returns face indefinite delays as manual processing remains frozen. All federal tax deadlines, including the April 15 cutoff, stay in effect.