IRS Withdraws 3 Percent Withholding Rules

Source: SC&RA Newsletter

The Internal Revenue Service has withdrawn both the final and proposed regulations it had issued to implement the now-repealed requirement for all levels of government to withhold 3 percent of the gross contract price from all their contractors to cover those contractors' potential federal tax obligations.  This requirement, which would have taken effect in 2013, was repealed by Congress late last year, noted the April 27 issue of the State Laws Newsletter.