Quick Take:
- Shutdown began: January 31, 2026
- Expected to end: February 3, 2026
- IRS funded through: February 7, 2026
- Bottom line: Unless the shutdown extends past this week, you likely won't experience any tax filing delays.
A partial government shutdown that began February 1, 2026, could impact private practice therapists filing their taxes—but only if it extends beyond this week.
Here’s what to expect, and steps you can take to keep your finances on track during the 2026 shutdown.
How is the 2026 shutdown different from the one in 2025?
The 2026 shutdown differs from the one in 2025 on two key points affecting private practice tax filers:
- It’s a partial—not a complete—shutdown, but it may affect the IRS
- It’s happening during tax season
More details:
Why the IRS impact may be limited (for now)
Unlike the 2025 shutdown, the IRS has cushion this time. The agency is using remaining Inflation Reduction Act funds—multi-year appropriations from 2022—to keep all employees working through at least February 7, 2026. This means:
- Full processing of returns and refunds continues
- Phone lines remain staffed
- Taxpayer Assistance Centers stay open
- All normal operations proceed
However, if the shutdown extends past February 7, the IRS will exhaust these funds and be forced to implement the same furlough procedures as 2025. Given that Speaker Johnson expects the shutdown to end by Tuesday, February 3, many therapists may not experience any IRS disruption at all.
What happens after February 7?
If the shutdown continues past February 7, the IRS will exhaust its Inflation Reduction Act funds and lose appropriations until the IRS appropriations bill is passed. That means the IRS would follow its shutdown procedure, which will be similar to the one it followed in 2025.
IRS employees will be furloughed, with essential workers ordered to work without pay. Right now, it’s hard to say what exactly the impact will be on IRS operations.
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) won’t last as long, but it has the distinction of being the first-ever government shutdown to occur during tax season.
In 2026, tax season occurs:
- From January 1st to April 15th for individuals and disregarded entities
- From January 1st to March 16th for S corporations and partnerships
Why is there 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.
For more background on the 2026 shutdown:
- 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)
If continued, how would the shutdown affect the 2026 tax season for therapists?
In 2026, the IRS will 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.
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.
The IRS also stopped responding to written correspondences, although any tax payments submitted by mail were processed.
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 will change with this one.
These deadlines still apply:
- 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.
For a complete list, see When Are My Taxes Due for My Private Practice?
How can therapists prepare for the 2026 shutdown?
Given that the shutdown is expected to end by February 3, most therapists won't experience IRS disruptions. However, to protect yourself in case it extends:
- 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.
- 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.
- 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.
- 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.
When will the 2026 government shutdown end?
House Speaker Mike Johnson expects the shutdown to end by Tuesday, February 3, 2026, when the House votes on the Senate-passed funding package. However, political dynamics remain fluid. If the shutdown extends beyond February 7, the IRS will begin implementing furlough procedures similar to those in 2025.
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.
Manage your bookkeeping, taxes, and payroll—all in one place.
Discover more. Get our newsletter.
Get free articles, guides, and tools developed by our experts to help you understand and manage your private practice finances.
