Here's a bit of good news if you're stressed about taxes: the IRS says it's staying open for business. Despite the ongoing partial government shutdown, the agency confirmed it will keep processing tax returns and sending out refunds on schedule. So, the April 15 deadline is still very much a thing.

This isn't your typical shutdown scenario. The IRS is operating "under the current lapse in appropriations until further notice," using funding that was authorized back in 2022. This little legislative quirk means the taxman can keep working while other parts of the government, like Homeland Security and the TSA, are feeling the pinch from the congressional funding fight.

It's a critical time for this assurance. The IRS says nearly 70 million people have already filed their federal returns this season, and it has cut more than 50 million refund checks. The average refund is looking pretty healthy, too—up about 10.9% from the same period last year to roughly $2,290. This bump is tied to recent tax law changes, including adjustments from the One Big Beautiful Bill Act that affected the 2025 tax year. President Donald Trump has been touting the season, pledging it will be the "largest tax refund season ever."

The Billion-Dollar Deadline

While refunds are flowing for those who filed, there's a massive pot of money that's about to vanish if people don't act. The IRS issued a separate warning that over 1.3 million Americans are sitting on $1.2 billion in unclaimed refunds from the 2022 tax year. If they don't file those overdue returns by April 15, that money is gone forever, transferred straight to the U.S. Treasury.

Think of it as the government's version of an abandoned bank account. The median unclaimed refund is $686, and many of these folks might also be eligible for the Earned Income Tax Credit, which was worth up to $6,935 in 2022 for those with qualifying children. The states with the most money on the line are California (an estimated $124.7 million owed to about 143,200 people), Texas ($111.7 million), and Florida ($74.5 million).

A New Tool For Your Paycheck

In other IRS news, the agency has rolled out an update to its Tax Withholding Estimator. This free online tool, which you can use without creating an account, now reflects the changes from the One Big Beautiful Bill Act. It's designed to help you figure out if you're having the right amount of tax withheld from your paycheck, which is especially useful if you've had a major life change (like getting married or having a kid) or if you work multiple jobs. The update includes new provisions for things like tipped income and overtime earnings.

The IRS says it will provide more guidance if its funding situation changes, but for now, it's full steam ahead on tax season. So, if you've been procrastinating, you might want to get on that—not just to avoid penalties, but to potentially claim a refund that's about to expire.