Office of Management and Budget acting Director Russell Vought told reporters Monday that tax refunds will go out, contrary to previous government shutdown policies.
Software companies and tax professionals will begin accepting and preparing tax returns before January 28 and will submit them when the IRS systems open later this month.
According to IRS data through April 2018, the IRS processed over 130 million individual tax returns and issued close to 100 million refunds that totaled $275 billion.
Jared Kushner, Vice President Mike Pence and Homeland Security Secretary Kirstjen Nielsen enter the Eisenhower Executive Office Building for a second day of negotiations on border security and the government shutdown, in Washington, Jan. 6, 2019.More news: Lindsay Lohan Reflects on Past Relationships With Wilmer Valderrama and Samantha Ronson
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If the shutdown weren't enough to contend with, taxpayers and the IRS have to grapple with the most sweeping overhaul of the USA tax code in three decades.
However, tax returns will be filed under the Tax Cuts and Jobs Act signed in 2017. The average tax refund paid during February a year ago was more than $3,000, and allowing that money to be paid could prevent an outcry from many taxpayers.
The Trump administration has assured Americans that federal income tax refunds will be sent out despite the government shutdown that's been going or two weeks. Senior administration officials changed rules to pay Coast Guard salaries in December, restart an IRS program to clear mortgage applications, and reopen some national parks.
CBS News says White House officials announced tax refunds will go out and will not be affected by the shutdown.
Meanwhile, some economists and experts are scratching their heads, wondering how Trump will accomplish paying out tax refunds during a federal government shutdown.
"There's also a lot of opportunities with different corporations or different tax places in the area that do offer what's called the advance on returns".