Even though the government has reopened, many taxpayers are discovering that things at the IRS haven’t bounced back to normal just yet. The shutdown may have ended, but its after-effects are still being felt — especially when it comes to processing tax returns, issuing refunds, responding to letters, and resolving taxpayer issues.
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If you’re wondering whether your refund will arrive on time this year, or you’ve been waiting months for the IRS to reply to a letter, you’re not imagining things. The IRS is working through a significant backlog, and these delays may affect when you receive your refund or how quickly your tax issue is resolved.
Here’s what’s going on behind the scenes — and how you can protect yourself as we move into the next filing season.
During the government shutdown, the IRS paused or significantly limited many of its operations. While automated systems continued running — such as electronic filing and direct-deposit refunds — most IRS departments rely heavily on staff.
Meanwhile, tax deadlines did not change. Individuals and businesses still had to file and pay on time — even though IRS staff weren’t there to handle the incoming work.
Now that employees have returned, they’re facing months’ worth of paper, correspondence, and pending cases. As a result, the agency is warning taxpayers and tax professionals to expect slower-than-normal processing times.
While the IRS is actively working through its backlog, taxpayers should prepare for longer processing times across multiple areas. Here’s what you can expect based on current trends.
These departments have reopened, but they are moving slowly. If your case was paused during the shutdown, expect a longer road to completion.
These delays can affect taxpayers in several ways — especially if you’re expecting a refund or have a time-sensitive issue with the IRS. Here’s what to keep in mind.
The fastest path is still:
Paper returns, or anything requiring manual review, will move much more slowly.
This includes:
It may take months before the IRS updates your case status.
These departments are still catching up. It’s a good idea to:
That includes:
Even though processing is slow, filing sooner puts you closer to the front of the line.
While you can’t fix the IRS backlog, you can take steps to make your own experience smoother.
E-filed returns move through the system much faster than paper returns.
This avoids delays caused by paper checks.
Simple mistakes — such as an incorrect Social Security number or mismatched income figures — can trigger manual review and months-long delays.
Use certified mail or save electronic proof of mailing.
Given today’s delays, it’s reasonable to check in if:
If a tax refund is part of your budgeting, savings plan, or retirement cash flow, build in extra time — this year may not follow the usual IRS timeline.
Because the IRS is still catching up, some experts expect:
If Congress passes additional tax-related legislation, that may also introduce new forms the IRS must implement — adding to delays.
The good news? The IRS is working through the backlog, and most electronically filed returns will still be processed within a reasonable timeframe.
The not-so-good news? Paper returns, amendments, identity-theft cases, and correspondence may take significantly longer this year.
With a little planning — and a clear understanding of what to expect — you can navigate this unusual tax season with fewer surprises. Filing early, using e-file and direct deposit, and keeping good records will give you the best chance of avoiding delays.
If you have questions about how IRS processing times might affect your financial plans, your bank or tax professional can help you prepare and stay informed.