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White House: Tax refunds will be paid despite govt. shutdown

10 January 2019

The White House says that tax refunds will go out on time during the partial government shutdown.

In previous shutdown contingency plans, the IRS would accept tax returns during the filing season, but refunds would be delayed until the government was funded.

The White House Office of Management and Budget announced the decision in order to make the shutdown as "painless as possible" for citizens, in the event it carries on into tax season.

As Vox reported last week, the IRS plan was to furlough all but about 10,000 of its workers, (keeping just 12.5 percent of employees working) thus making processing tax refunds hard, if not impossible.

House Democrats have made a few attempts of their own to end the shutdown.

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He said the president has been negotiating to reopen the government and to secure the border and has directed OMB to mitigate effects of the shutdown for the American people.

The shift from the White House comes as officials prepare for an extended shutdown.

While that may inconvenience taxpayers and accountants, the administration has reversed course from its predecessors by issuing refunds during a shutdown.

The White House says that tax refunds will be paid during the government shutdown, after all, The Wall Street Journal reports.

President Trump has threatened to continue the ongoing federal shutdown for months, or longer.

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The administration is seeking to avoid a delay in payouts of tax refunds to millions of Americans who are owed money.

"The processing of returns and customer service - most of those employees have been furloughed", Nicole Kaeding, director of federal projects at the Tax Foundation, told CNBC.

The new law, which took effect January 1, 2018, gave generous tax cuts to corporations and the wealthiest Americans and more modest reductions to middle- and low-income households.

One of the agencies affected by the partial government shutdown - now in its third week - is the Internal Revenue Service.

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White House: Tax refunds will be paid despite govt. shutdown