Posts Tagged ‘2012 Withholding’
Brandon Cook, CPA | Manager, Tax Services Group and Team Member of the Construction Services Group
317.241.2999 | bcook@greenwaltcpas.com
Back in March of 2009 I wrote my first article on this topic. At that time, not very many professionals or clients were aware of a tiny inclusion buried in the Tax Prevention and Reconciliation Act of 2005. Section 511 of this tax act will require Federal, State, and Local governments with total expenditures of $100 million or more to withhold 3% of a contract’s total payments for goods or services provided to the governmental body to guard against possible business tax evasion. This withholding provision originally was supposed to take effect on payments received on or after January 1, 2011, however, the American Recovery & Reinvestment Act of 2009 delayed the effective date until January 1, 2012.