Will the Government Shutdown Delay My Tax Refund?
Despite the shutdown, the IRS says it will provide refunds to taxpayers without delay. We’re not so sure.
As the record-setting government shutdown drags on and thousands of IRS employees sit at home, many Americans are understandably concerned about getting their tax refunds on time. However, the IRS has said that refunds will go out “as scheduled.” Whether that actually happens remains to be seen.
How will they do this? The IRS says that a significant portion of its workforce will be called back to work to process tax returns and issue refunds. More details regarding the IRS’s plans are expected soon, but there’s already resistance from the National Treasury Employees Union. The union has filed a lawsuit challenging the IRS’s ability to force employees to work without pay. If the IRS can’t recall enough employees, then the plan to issue refunds in a timely manner seems shaky.
Back in 2011, the Office of Management and Budget (OMB) instructed the IRS not to pay refunds during government shutdowns. As a result, almost $4 billion in tax refunds were delayed following the October 2013 shutdown. Now, however, the OMB says the IRS may pay tax refunds during a lapse in funding. Legal challenges to this opinion could also sink the IRS’s plan.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
We won’t have to wait too long to see if the IRS is able to keep its promise. Filing season begins January 28, 2019. If the IRS is indeed on schedule this year, refunds for early-bird filers could be issued as soon as mid-February. Our advice: File as early as possible. If the IRS falls behind schedule due to the shutdown, you don’t want your return at the back of a potentially massive backlog.
-
6 Champagne Problems Successful Retirees FaceWhat do you do if your biggest financial threat is simply having too much of a good thing — money?
-
Congress is Set for a Busy WinterThe Kiplinger Letter The Letter editors review the bills Congress will decide on this year. The government funding bill is paramount, but other issues vie for lawmakers’ attention.
-
A Portfolio Checklist If You're Planning to Retire in 2027Are you planning on retiring in 2027? This portfolio checklist will help put you on the right path.
-
A Free Tax Filing Option Has Disappeared for 2026: Here's What That Means for YouTax Filing Tax season officially opens on January 26. But you'll have one less way to submit your tax return for free. Here's what you need to know.
-
When Do W-2s Arrive? 2026 Deadline and 'Big Beautiful Bill' ChangesTax Deadlines Mark your calendar: Feb 2 is the big W-2 release date. Here’s the delivery scoop and what the Trump tax changes might mean for your taxes.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit AnxietyTax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
States That Tax Social Security Benefits in 2026Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?
-
10 Cheapest Places to Live in WashingtonProperty Tax Is Washington your go-to ski destination? These counties combine no income tax with the lowest property tax bills in the state.
-
3 Major Changes to the Charitable Deduction for 2026Tax Breaks About 144 million Americans might qualify for the 2026 universal charity deduction, while high earners face new IRS limits. Here's what to know.
-
Retirees in These 7 States Could Pay Less Property Taxes Next YearState Taxes Retirement property tax bills could be up to 65% cheaper for some older adults in 2026. Do you qualify?
-
Estate Tax Quiz: Can You Pass the Test on the 40% Federal Rate?Quiz How well do you know the new 2026 IRS rules for wealth transfer and the specific tax brackets that affect your heirs? Let's find out!
