IRS will pay refunds during government shutdown, official says

White House says tax refunds ‘will go out’ but tax professionals say be prepared

White House says tax refunds ‘will go out’ but tax professionals say be prepared

The White House will order the IRS to pay income tax refunds despite the government shutdown, a senior administration official told ABC News.

The IRS, according to a 2017 law, doesn't typically conduct audits, issue refunds, or otherwise work with taxpayers outside of the standard filing season, which would include a government shutdown.

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.

The decision has yet to face any challenge from the Office of Management and Budget.

The comments came as Pence briefed reporters on the 17th day of the partial government shutdown.

U.S. residents are required to file tax papers by 15 April and can later receive refunds from the government based on income. "There is an indefinite appropriation to pay tax refunds". Tax-filing season officially begins January 28, and while those who owe Uncle Sam will still have to pay up by April 15, people who are due to receive money back have anxious about whether the closure could postpone their payments.

Herron explained, "The budget tells the IRS how to configure training for the employees, it tells them how to configure the tax returns, the actual forms, it also tells them how to configure their computers to process the tax returns".

Some experts question whether the Trump administration has the legal authority to reverse earlier policies to allow government money to flow into refunds during a shutdown. "But the disruption will increase exponentially for every week the shutdown isn't resolved, particularly if it delays the payment of tax refunds next month".

That's what will happen if the shutdown continues past the opening date for tax returns.

Monday's announcement puts to bed any lingering concerns that the release of tax refunds could be delayed by the ongoing shutdown, which affects the Internal Revenue Service among other agencies.

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