IRS says refunds will be processed and paid

The IRS has announced that tax season will begin on January 28, and the Service will begin accepting paper and electronic returns that day, reports Forbes. Despite the partial government shutdown, IRS Commissioner Chuck Rettig said, "We are committed to ensuring that taxpayers receive their refunds." The Office of Management and Budget has determined that the relevant law allows the IRS to pay refunds during a lapse in annual appropriations.

Other sources report that the IRS has also said it will resume its Income Verification Express Service program, used by many lenders to obtain tax transcripts to support income claims in loan applications.

Notwithstanding the IRS announcements, Forbes also reports the National Treasury Employees Union filed a lawsuit alleging the administration is violating the Fair Labor Standards Act (FLSA) by requiring federal employees to work without pay during the partial government shutdown. The union is asking the court to order the government to pay compensation for these employees plus 100% liquidated damages.