Potential IRS Funding Lapse: What Taxpayers Need to Know Ahead of Saturday's Deadline

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WASHINGTON (NEXSTAR) – With the 2026 tax filing season barely underway, a potential government shutdown on the horizon could soon impact IRS operations and funding as early as this Saturday.

If Congress doesn’t approve the proposed funding package by Friday’s midnight deadline, a partial shutdown will initiate, affecting various government services.

In the midst of this political turmoil, the IRS may face temporary challenges that could delay tax refunds. Taxpayers are advised to stay informed on how to navigate these potential disruptions.

For the funding package to pass, Republicans will need bipartisan support, including some Democratic votes. However, this task has grown more challenging in light of recent events in Minneapolis, where federal agents fatally shot Renee Good and Alex Pretti, intensifying political tensions.

Senate Minority Leader Chuck Schumer (D-N.Y.) and fellow Democrats have expressed their intent to withdraw support for the funding package, particularly due to its allocations for Homeland Security (DHS).

On Monday, GOP senators held firm and dismissed calls to pull DHS funding from the package, which passed the House last week.

The progress that Congress has made so far on spending bills means that much of the federal government’s work would continue even if lawmakers are unable to complete the job.

A bill that Trump signed Friday funds the departments of Justice, Commerce and the Interior, the Environmental Protection Agency, NASA, and the U.S. Army Corps of Engineers through the end of the budget year in September.

Should a shutdown happen, the IRS, however, is among the agencies that could lose funding.

How could this affect taxpayers?

With the April 15th deadline less than three months away, many Americans are likely wondering how an extended shutdown might affect their returns – and the “very large” refunds touted by Trump administration officials.

During the 43-day closure in 2025 we got a glimpse of what might happen should another impasse occur this weekend.

In October, 2025 the IRS rolled out a contingency plan that allowed the agency to continue some limited activities, but forced the closure of physical assistance centers.

As for refunds, the IRS told taxpayers that they would not be paid, with one exception: “For taxpayers filing a Form 1040, refunds will be continue to be paid on electronically filed, error-free tax returns that can be automatically processed and direct deposited.”

The IRS also reminded taxpayers that a government shutdown is not a free pass, and taxes should be paid on the normal timeline.

In the case of a partial shutdown this Friday, Adam Brewer, tax attorney with AB Tax Law, told Nexstar he thinks the IRS will continue to have some employees processing returns and refunds, especially since the administration has “placed such an emphasis on taxpayers receiving larger refunds than in years past as a result of the One Big Beautiful Bill Act.”

Nexstar asked the IRS and Treasury department for further details on any contingency plans but did not receive a response Tuesday.

Brewer suggests taxpayers should do everything they can to streamline the filing process this year, just in case.

“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.

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Potential IRS Funding Lapse: What Taxpayers Need to Know Ahead of Saturday’s Deadline

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