IRS sets date for 3 percent withholding tax hearing

Hearing is latest step to assuage contractors' concerns

The 3 percent contractors' withholding tax is getting a hearing before tax officials.

The Internal Revenue Service announced it has set a hearing for Sept. 12 about the tax that would withhold payments to contractors. Officials said they are gathering more input on a proposal they made in May, according to a Federal Register notice dated Aug. 17.

In May, the IRS said it received numerous comments on the possible tax, which would affect federal, state and local governments on contracts awarded after Dec. 31, 2012.

Overall, respondents said they were concerned about the administrative burdens of compliance and the effects on companies’ revenues.

The IRS then postponed the start date for withholding payments. The tax became law in 2006 but has been postponed since then.

The tax provision has been promoted as a way to narrow the tax gap and make delinquent companies pay their share of taxes, but opponents insist the provision would hurt businesses.

Read the notice.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Reader Comments

Thu, Aug 18, 2011 milliibarra

An offer in compromise is the most common settlement method individuals think about when it comes to settling with the IRS. Not only is this the most thought of method, but also the hardest one to qualify for but "Free Tax Settlement" advisers can help make it possible.

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.