This decision could prove extremely consequential for USA households and the US economy. Last year, the IRS issued billions of dollars in refunds - an average of more than $2,000 (£1,600) per filing.
If you visit the Internal Revenue Service website, you'll see an alert that reads, "Due to the current budget situation, all IRS offices are closed".
But it's unclear what legal authority the administration is asserting.More news: Police Investigating Reported Party At R. Kelly’s Chicago Studio
The news is likely a relief to Americans who had been wondering whether they'd receive their refunds on time given that a significant chunk of Washington has come to a screeching halt.
An existing IRS contingency plan laid out how the agency would run during a shutdown through December 31. "This is what you get", he added, referring to the shifting management of the shutdown.
The White House will issue guidance that will make the tax move official by detailing how the government will go about issuing the refunds. 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.More news: Huawei unveils server chipset as it seeks new growth areas
The White House has directed the IRS to pay tax refunds to millions of people during the partial federal shutdown.
Democrats in the House of Representatives, meanwhile, have pushed for legislation without wall funding to re-open the government as the debate continues. However, the Trump administration announced today that it is reversing this policy.
"We have tried to make this as painless as possible consistent with the law", Vought said. "I appreciate the hard work of the employees and their commitment to the taxpayers during this period", said Chuck Rettig, IRS commissioner.
And because IRS employees are still working to implement the Tax Cuts and Jobs Act of 2017 - a sweeping tax reform bill spearheaded by congressional Republicans and the Trump administration - questions from tax preparers and taxpayers about new tax rules and forms abound.More news: Chandler Parsons 'disappointed' to leave Grizzlies, 'ready to play'