Government Relations Alert!

3% Withholding Requirement Repealed

On November 21, 2011, the President signed legislation repealing the requirement that governments withhold 3% of on all payments for goods or service, beginning in 2013.  The Senate on November 10, 2011, unanimously passed the repeal of H.R. 674.  The house had already passed H.R. 674 on October 27th.  Although the Senate version included the same revenue offset as the House version (which modifies the calculation of adjusted gross income for purposes of determining eligibility for certain healthcare credits), the Senate added a jobs provision sought by the President that would provide tax credits for businesses that hire certain veterans.  Consequently, the bill was returned to the House for a new vote.  As expected, on November 16, 2011, the House passed the amended bill by a unanimous vote, and the President signed it into law November 21st.

Consequently, this unfortunate and burdensome law will never take effect.

 

Worldwideerc.org Article

 

 

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