IRS to collect taxes and issue refunds during shut down.

As the government shutdown enters its third week, agencies are scrambling to determine what the shutdown means to them. For the Internal Revenue Service (“IRS”), there was never any question that they would continue to collect taxes regardless of what happened.

Initially the concern was whether the agency could process refunds during the Washington D.C. imposed hiatus.  However, the White House issued guidance on Monday that will permit the executive agency to process and mail tax refunds while the government is closed.