The Internal Revenue Service (IRS) officially opened tax filing on Monday, January 26, signaling the start of the 2025-2026 tax season. But concerns over the status of the refunds grew after the U.S. government slipped into a partial shutdown on Saturday as it awaited the approval of a funding deal President Donald Trump negotiated with Democrats, following national outrage over the killing of U.S. citizen Alex Pretti in Minneapolis by Border Patrol agents.
For many households, tax refunds are the largest single payment they receive each year. The IRS said the average refund last year was nearly $3,200. This year, the refunds could be even higher.
A recent analysis by financial services firm Piper Sandler suggests that the typical compensation could increase by about $1,000, bringing the average to about $4,200. However, actual refund amounts will vary depending on individual circumstances and the impact of the Republicans’ “big, beautiful” tax and spending legislation, CBS News reports.
Will a partial government shutdown delay taxpayer refunds?
Tax refunds may be affected by a full or partial government shutdown.
If a funding shortfall forces the IRS to curtail services, refunds are typically not issued during that period, according to the agency’s 2025 shutdown guidance. Previously, there was an exemption for individual taxpayers who electronically filed error-free 1040 forms that could be processed automatically and paid by direct deposit.
During the 2025 shutdown, which ran from Oct. 1 to Nov. 14, the IRS suspended most of its key operations, even though existing funding was expected to keep the agency afloat. During the first week, roughly half of the IRS staff was laid off and services were curtailed after the agency ran out of available funds.
Change tax due date during downtime?
The April 15 tax filing deadline remains unchanged during the government shutdown unless specifically notified by the IRS otherwise.
During last year’s shutdown, the IRS said, “All tax deadlines remain in effect, including those for individuals, corporations, partnerships and employers.”
How to track your payment online?
You can check the status of your refund using the IRS “Where’s My Refund?” tool on IRS.gov or through the IRS2Go mobile app.
Once the system is available, you’ll need to provide your Social Security Number or Individual Taxpayer Identification Number (ITIN), filing status, and the exact refund amount shown on your tax return. After entering the required information, submit your details to access your refund status.
The refund tracker will display one of three updates. “Return Received” means that the IRS has successfully received your tax return. “Refund approved” means that your return has been processed and your refund is scheduled for payment. “Refund Sent” confirms that the IRS has processed the refund, although it may take a few more days for your bank to credit your account.