Which may mean having to file an amended return later, because Herron says the budget literally directs IRS operations, including everything from tax forms to software. Last year, the average refund was more than $2,890, according to the agency.
Vought, who is essentially running OMB with OMB head Mick Mulvaney taking on the role of White House chief of staff, said the administration is working to send out guidance on this.
United States residents are required to file tax papers by 15 April and can later receive refunds from the government based on income.
House Speaker Nancy Pelosi said she intends to begin passing individual bills to reopen agencies in the coming days, starting with the Treasury Department to ensure people receive their tax refunds.
"Tax refunds will go out".
Monday's announcement is a reversal of a traditional policy whereby Americans are allowed to pay taxes during a shutdown, but refunds are not issued.
Until today, the Trump administration said refunds couldn't be paid while the IRS was shut because that wasn't necessary to protect life or government property.
"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.
President Trump has threatened to continue the ongoing partial federal shutdown for months, much longer than past lapses have endured.
Last year, the IRS began accepting returns on January 29.
Tax refunds do not come from money appropriated by Congress but the salaries of the IRS workers do come from Congressional appropriations, which is why employees typically do not work during government shutdowns.