Accounting News

Thursday, November 17, 2011
Congress Approves Tax Changes

The House of Representatives have approved HR 674 concerning taxes. The bill makes the following changes to the tax code.

  • Repeal of the 3% withholding requirement for government contractors. This was enacted as part of the Tax Increase Prevention and Reconciliation Act of 2005.
  • It creates tax credits for employers that hire military veterans after the date the law is enacted.
  • It allow the IRS to impose a levy on paying vendors of the federal government if they have unpaid federal taxes. The levy can be up to 100%.
  • The Treasury Department is to conduct a survey of tax compliance by government vendors.
  • It changes the definition of gross income for health care benefits as part of the Patient Protection and Affordable Care Act.
The change in the withholding requirement was heavily  lobbied for by the AICPA. The bill now moves on to the president for signature into law.

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