A partial government shutdown has entered its fourth day, raising concerns about its impact on the Internal Revenue Service (IRS) and the ongoing tax season. While the IRS is currently operating normally, its ability to maintain full staffing and process tax refunds beyond the next few days remains uncertain if the impasse continues.
The Internal Revenue Service has stated that it is functioning as usual despite the partial government shutdown. Approximately 75,000 IRS employees are expected to continue their work through Saturday. Their current pay is being covered by funds allocated through the Inflation Reduction Act. This measure is intended to mitigate immediate disruptions during the critical tax filing period.
However, the situation remains precarious. It is currently unclear what will happen if the partial government shutdown extends beyond Saturday. During a previous, record-long shutdown in the fall, the IRS initially kept all employees on duty but later furloughed over 34,000 staff members. That shutdown did not occur during tax season, but it did coincide with the agency’s efforts to implement significant tax policy changes.
For taxpayers, the primary concern is the potential effect on tax refunds and the processing of returns. While the IRS is operating normally for the time being, any prolonged shutdown could lead to delays. The deadline for filing and paying 2025 taxes remains April 15. Taxpayers are still encouraged to file their returns on time, as missing the deadline can result in penalties and interest. Those who anticipate difficulty meeting the deadline can request an extension before April 15.
The current partial shutdown began on Friday, January 31, stemming from disagreements over funding for the Department of Homeland Security, particularly concerning federal immigration enforcement. Lawmakers have been working towards a resolution, with the U.S. Senate reaching a deal to fund the Department of Homeland Security for the next two weeks. This deal passed the U.S. House on February 3 and awaits President Donald Trump’s approval to fully reopen the government.