The Internal Revenue Service confirmed it will continue normal operations during the ongoing partial government shutdown, assuring millions of Americans that tax filings and refunds will proceed on schedule through the heart of the 2026 filing season.
According to IRS statements and agency data, the service will operate “under the current lapse in appropriations until further notice,” drawing on funding authorized under 2022 legislation, a mechanism that sets the current situation apart from prior shutdowns that severely curtailed IRS services.
The partial shutdown follows a prolonged funding lapse tied to a congressional standoff over immigration enforcement reform. It has cut off appropriations for the Department of Homeland Security and its components, including U.S. Customs and Border Protection, the Transportation Security Administration, and the U.S. Secret Service. The IRS, however, falls outside its scope.
The agency said offices will maintain regular hours, online self-service tools will remain available, and the April 15 filing deadline stands.
A Season Of Bigger Refunds
The confirmation comes at a critical moment. According to IRS data, nearly 70 million Americans have already filed federal returns this season, and the agency has issued more than 50 million refunds, with average refund amounts running more than 10% above the prior filing season.
Early IRS data through February showed the average refund had climbed to roughly $2,290, up 10.9% from the same period in 2025. The increase comes amid recent tax law changes and adjustments to deductions under the One Big Beautiful Bill Act, which affected the 2025 tax year.
President Donald Trump has framed the season as validation of his economic agenda, pledging it will be the “largest tax refund season ever.”
$1.2 Billion In Unclaimed Refunds at Risk
While refunds trend higher for those who have filed, the IRS issued a separate alert warning that more than 1.3 million Americans risk forfeiting $1.2 billion in unclaimed refunds for tax year 2022 if they do not file overdue returns by April 15. Federal law extinguishes unclaimed refunds after three years, transferring the funds to the U.S. Treasury.
The IRS estimates the median unclaimed refund at $686, with many filers also potentially eligible for the Earned Income Tax Credit, which was worth up to $6,935 in 2022 for those with qualifying children. California leads all states with an estimated $124.7 million owed to roughly 143,200 individuals, followed by Texas at $111.7 million and Florida at $74.5 million.
New Withholding Tool Rolled Out
The IRS also updated its Tax Withholding Estimator to reflect changes under the One Big Beautiful Bill Act, including updated provisions affecting tipped income, overtime earnings, and the Child Tax Credit. The tool, available online without an account, provides personalized estimates to help taxpayers better align withholding with their actual tax liability.
The agency said it is particularly useful for workers with multiple jobs or those who have experienced major life changes such as marriage or the birth of a child.
The IRS said it will issue further guidance if its funding status or operational circumstances change.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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