IRS Delays Rule To Withhold 3% From Gov't Contracts

Law360, New York (May 9, 2011, 7:30 PM EDT) -- The Internal Revenue Service has delayed implementation of a rule requiring the federal government to automatically withhold 3 percent from payments to contractors by one year, according to a notice published in the Federal Register on Monday.

The rule, which has drawn criticism from government contractors, will go into effect for payments made after Dec. 31, 2012. The IRS said in the notice that it had received many comments expressing concern about the administrative burdens of compliance and the impact on contractors' cash flow during tough...
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