New Law Repeals 3% Contractor Withholding
On November 21, 2011 President Obama signed Public Law 112-56, 3% Withholding Repeal and Job Creation Act, into law. This Act repeals the requirement for governments to withhold 3% of certain payments to contractors originally created under the Tax Increase Prevention and Reconciliation Act of 2005 (Public Law No. 109-222).
For more information on the repeal, see the FSLG website.
Although IRC Section 3402(t) requirements are repealed, other reporting requirements remain for Federal agencies as well as state and local governments.
For information about these requirements:
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