Taxpayers will receive tax refunds despite shutdown

Good News Trump White House Says Government Shutdown Won't Impact Tax Refunds

The Trump administration contradicted all Republican logic, reversed precedent set by previous administrations and may have broken the law by announcing that the Internal Revenue Service will not delay the running of your money because the IRS will issue tax refunds during the federal government shutdown.

The Trump administration is looking to find workarounds as key federal agencies operate without funding in the new year.

Pence says the president has invited Democratic leaders Chuck Schumer and Nancy Pelosi back to the White House to continue their discussions.

The acting director of the Office of Management and Budget, Russell Vought, told reporters on Monday that the Trump administration is working to make the "shutdown as painless as possible", adding that tax "refunds will go out".

In years past, the IRS has accepted tax returns during shutdowns, but hasn't paid out refunds until normal operations resume.

"When I look in my tax software, which is professional tax software, there are many forms that haven't been finalized", said Steven Zelin, a CPA based in Manhattan.

At the time, the OMB's general counsel disagreed with the IRS chief counsel's position and said tax refunds could not be paid out during a shutdown. "We keep trying to call people at IRS and Treasury", said Daniel Rubin, a spokesman for the Ways and Means Committee, "and there's no one there". The IRS had issued more than 6 million refunds, totaling $12.6 billion - an average refund of $2,035.

"[The] longer the shutdown lasts, the more government services will grind to a halt".

Make them work for free.

Neither, apparently, are house Democrats. But Miller said the agency is still taking your money.

OMB's decision is the latest in a string of reversals and changes made during the course of the ongoing shutdown, which began December 22 and caught many White House officials flat footed and unprepared for a lengthy lapse in funding.

These legal decisions come in the midst of a constantly changing strategy in the White House over how to manage the shutdown.