Refunds are still rolling, but only for some
Hey, here’s some good news in the middle of all the uncertainty. Even though the government shutdown has put much of Washington on pause, the IRS announced that some taxpayers will still get their refunds. On October 21, the agency said it will continue sending refunds for electronically filed, error-free individual returns that use direct deposit.
In other words, if you e-filed your tax return correctly and chose to have your refund sent directly to your bank account, you should still get your money—even while much of the government remains closed.
The IRS made this clear in an online update, saying that “the underlying tax law remains in effect,” meaning you still have to meet your normal tax obligations. So, while many IRS operations are paused, taxes don’t take a break.
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What you need to know about refunds
Here’s how it breaks down. Normally, during a shutdown, the IRS stops processing refunds entirely. This time, they’re making one key exception. Tax refunds will continue for people who:
- Filed an electronic Form 1040,
- Made no errors on the return, and
- Selected direct deposit for the refund.
If you filed a paper return or made a mistake, your refund will likely be delayed until the shutdown ends. The IRS strongly recommends filing electronically with direct deposit to avoid getting stuck in the backlog.
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What’s still working—and what’s not
The IRS shutdown started back on October 1, after Congress failed to reach a funding deal. Since then, about 35,000 employees have been furloughed, while nearly 40,000 have stayed on to keep essential services running.
Some parts of the IRS are still functioning:
- The agency continues to accept and process payments, both electronic and mailed checks.
- Automated tools like “Where’s My Refund?” and the IRS2Go mobile app are still available.
- Income verification services (IVES) are still active, allowing banks and mortgage lenders to verify taxpayer income.
But most walk-in assistance centers are closed, and all in-person appointments—including those with the Taxpayer Advocate Service and the Independent Office of Appeals—have been canceled until the shutdown ends. Phone support is also limited, though some automated phone lines are still running.
Filing and paying taxes is still required
It’s important to remember that the shutdown doesn’t pause your tax responsibilities. The IRS made that crystal clear: all tax deadlines remain in effect, whether you’re an individual, a small business, or an employer handling payroll taxes.
You can still file your return online or by paper, but there’s a catch. Paper returns will sit unprocessed until full operations resume. However, if you send a payment with your paper return, the IRS will still deposit it.
So, while your refund might be delayed, any money you owe will still be collected on time.
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Getting information and tools online
If you need help, your best option right now is IRS.gov. The website remains available and includes several self-service tools. You can check your refund status, set up a payment plan, or get tax transcripts—all online.
The IRS says these digital tools are the fastest way to get help during the shutdown. Tax professionals and software companies are also still operating normally, including the Free File program for lower-income filers.
The bigger picture
The agency says it’s keeping some critical operations active to prepare for the upcoming 2026 tax filing season. That includes testing its systems and programs so everything runs smoothly when the new tax year begins.
While many Americans worry about longer refund delays, this latest update is a small relief. The IRS says it’s doing what it can to keep the most essential processes—like direct deposit refunds—moving, even with reduced staff.
So, if you filed electronically and chose direct deposit, sit tight. Your refund should still land in your bank account, even while much of Washington remains shut down. For everyone else, the wait may be longer—but the IRS promises that when operations resume, processing and payments will pick up right where they left off.
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