The ruling was issued Dec. 28, almost at the end of the year, though Kautter said he would revisit the decision following a meeting last month with Reps. Leonard Lance, R-7th Dist, and Josh Gottheimer, D-5th Dist.

The IRS had no immediate comment.

New Jersey homeowners, who pay the nation's highest property taxes, rushed to prepay them once President Donald Trump signed a Republican tax bill that curbed the federal deduction for state and local income, property and sales taxes.

The measure disproportionately affected residents of New Jersey and other Democratic-leaning high-tax states, most of which already pay billions of dollars more in taxes to the federal government than they receive in services.

The legislation has New Jersey lawmakers considering allowing localities to take charitable contributions, which are not capped, in lieu of property taxes.

The Democrats on the tax-writing panel said Treasury Secretary Steven Mnuchin indicated that the IRS would step up enforcement to ensure that taxpayers weren't trying to deduct extra prepaid property taxes.

"We are surprised and dismayed at this expression of IRS priorities, and we are angry to read of this naked political payback against taxpayers in blue states," the lawmakers wrote.