For private practice therapists filing their taxes, potential 2026 partial government shutdown could result in delayed refunds, longer processing times, and limited support from the IRS.

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Here’s what to expect, and steps you can take to keep your finances on track during if there is a shutdown.

How is the potential 2026 shutdown different from the one in 2025?

The potential 2026 shutdown differs from the one in 2025 on two key points affecting private practice tax filers:

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1. It would be a partial—not a complete—shutdown, but it affects the IRS
2. It would happen during tax season

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More details:

A partial shutdown with impact on the IRS

The 2026 shutdown would block six out of 12 appropriations bills. The good news is that some federal services would continue normal operations. The bad news is that the IRS is not one of them.

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A shutdown would stop funding for the IRS until the IRS appropriations bill is passed. That means the IRS would follow its shutdown procedure, which would be similar to the one it followed in 2025.

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IRS employees would be furloughed, with essential workers ordered to work without pay. Right now, it’s hard to say what exactly the impact would be on IRS operations. 

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During the 2018 – 2019 shutdown, the IRS ordered at least 26,000 employees back to work, but 14,000 refused. If something similar happens again, it could mean additional strain for an agency already short on personnel.  

Tax season slowdown

The 2025 government shutdown was the longest in American history, lasting 43 days. The 2026 shutdown (hopefully) wouldn’t last as long, but would have the distinction of being the first-ever government shutdown to occur during tax season.

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In 2026, tax season occurs: 

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• From January 1st to April 15th for individuals and disregarded entities
• From January 1st to March 16th for S corporations and partnerships

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Due to the high volume of filing during this period, the impact on the IRS—in terms of a backlog of paperwork—may be greater than it was in 2025.

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Why is there the potential for a government shutdown in 2026?

Senate Democrats are refusing to pass a bundle of six appropriations bills that includes funding for the Department of Homeland Security.

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For more background on the 2026 shutdown:

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• Explainer: Why would the US government shut down? (Reuters) 
• The government is barreling toward a partial shutdown over DHS funding. Here's what to expect (CNBC)

How would a potential shutdown affect the 2026 tax season for therapists?

In 2026, the IRS would follow a shutdown procedure similar to the one it followed in 2025. Here’s what you can expect.

Delayed refunds

During the 2025 shutdown, the IRS told taxpayers that they would not receive refunds—with one exception: “For taxpayers filing a Form 1040, refunds will continue to be paid on electronically filed, error-free tax returns that can be automatically processed and direct deposited.”

According to an IRS watchdog, the IRS is already facing a 129% jump in backlogged tax returns due to the 2025 shutdown—an amount higher than pandemic levels. A 2026 shutdown could lead to further delays for businesses expecting refunds. 

Tax assistance and complex cases delayed

In 2025, tax filers relying on IRS assistance or support due to financial hardship, or for help resolving procedural issues, faced delays. That’s because the National Taxpayer’s Advocate Office reduced its operations. The US Tax Court also paused most proceedings.

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If the IRS’s 2026 shutdown procedure replicates the one it followed in 2025, you can expect a similar situation during tax season.

Limits to IRS personal support

IRS phone support operated with minimal staff during the 2025 shutdown. While phone systems remained operational, most callers found they were unable to speak directly to representatives.

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The IRS also stopped responding to written correspondences, although any tax payments submitted by mail were processed.

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If you’re already in correspondence with the IRS, respond to any requests for information in a timely manner. And keep mail slips confirming your responses, so you prove later that you submitted them on time.

Filing deadlines and payments remain unchanged

The deadlines to file and pay your taxes did not change during the last government shutdown, and it’s unlikely that they would change with this one. 

These deadlines still apply:

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• January 15th, 2026: Q4 estimated taxes for 2025 were due
• February 2nd, 2026: Forms W-2, W-3, and 1099-NEC due to be sent to employees and contractors, with copies submitted to the IRS.
• March 16th, 2026: Tax returns for S corporations and partnerships due.
• April 15th, 2026: Tax returns for individuals and disregarded entities due.

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For a complete list, see When Are My Taxes Due for My Private Practice?

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How can therapists prepare for a potential 2026 government shutdown?

To weather the potential 2026 shutdown, here are some steps your practice can take:

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• File accurately and on time. IRS deadlines, and penalties for late filing and payment, continue to apply. If you won’t be able to complete your taxes on time, request an extension. 

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• Don’t count on a timely tax refund. If you are budgeting for a sizable tax refund in 2026, now may be a good time to adjust your budget. 

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• Consider delaying complex tax moves. During a shutdown, there is potential for more complex procedures—like electing S corp status or modifying past returns—to be delayed. Consult with an accountant before making any business-critical decisions.

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• Keep up with remittances and quarterly payments. Payroll remittance schedules and the deadlines for quarterly payments have not changed. Keeping up to date with all your filings and payments now is the best insurance against complications in the future.

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When would the 2026 government shutdown end?

There’s no clear indication of when the shutdown would end. And it remains to be seen to what extent exactly the shutdown would impact tax season for therapists. 

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Heard is committed to keeping private practice therapists up to date on the news that affects them. For updates on the 2026 government shutdown and possible IRS delays, subscribe to our newsletter.

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