AICPA Tax Vice President Edward Karl Applauds Congress’ Vote to Repeal 3 Percent Withholding Requirement
Published November 16, 2011
Washington (Nov. 16, 2011) – The following is a statement by Edward Karl, vice president of taxation for the American Institute of Certified Public Accountants.
“The AICPA commends Congress for recognizing that it makes sense to repeal the requirement that generally requires federal, state and local governments to withhold 3 percent on payments made to government contractors, as well as on certain other payments such as Medicare.
“The overwhelming votes by the U.S. House of Representatives and U.S. Senate to pass H.R. 674, which would repeal the requirement passed by Congress in 2005, further demonstrate the widespread support for repeal. Congress delayed the effective date of the provision in 2009 from Jan. 1, 2011 to Jan. 1, 2012, and the Internal Revenue Service issued final regulations on May 9 that included a further one-year delay in the effective date until Jan. 1, 2013.
“The AICPA has strongly supported H.R. 674 and efforts to repeal the 3 percent withholding requirement. With today’s vote, the bill can move to the White House. The AICPA urges President Obama to quickly sign H.R. 674 into law.”