Story perspectives

Government Shutdown Looms: Tax Refund Delays Expected

1/28/2026

Center

Congress Faces Shutdown

A partial government shutdown could occur if Congress misses the January 30, 2026 funding deadline.
Senate Democrats oppose a funding measure for the Department of Homeland Security due to federal agent shootings.
If the shutdown occurs, the IRS could see significant disruptions, as in November 2025 when half its staff were furloughed.
Taxpayers could face refund delays, especially for paper-filed returns.

Right

IRS Launches Tax Season

The Internal Revenue Service (IRS) opened the 2026 tax filing season on January 26, 2026.
The IRS expects about 164 million individual tax returns by the April 15 deadline.
The One, Big, Beautiful Bill's provisions aim to reduce tax burdens and increase refunds.
The IRS Chief Executive Officer Frank Bisignano noted the year’s significance, marking the 250th anniversary of the Declaration of Independence and the 40th anniversary of electronic filing.

History

Historical Context

The 2013 U.S. federal government shutdown, lasting 16 days, stemmed from budget disputes and the debt ceiling crisis, costing the economy an estimated $24 billion. This followed the Budget Control Act of 2011, which mandated significant spending cuts. As Congress debates funding for the Department of Homeland Security ahead of a January 30, 2026 deadline, the potential for another shutdown looms, echoing past fiscal challenges.

1 of 3

Congress Faces Shutdown

A partial government shutdown could occur if Congress misses the January 30, 2026 funding deadline.
Senate Democrats oppose a funding measure for the Department of Homeland Security due to federal agent shootings.
If the shutdown occurs, the IRS could see significant disruptions, as in November 2025 when half its staff were furloughed.
Taxpayers could face refund delays, especially for paper-filed returns.

1 / 3