Tax & Accounting Blog

Three Percent Withholding by Government Payers: House Subcommittee Hears Requests for Repeal

Three Percent Withholding by Government Payers: House Subcommittee Hears Requests for Repeal

On Thursday, May 26, the U.S. House of Representatives Small Business Subcommittee on Contracting and Workforce held a public hearing titled, “Defer No More: The Need to Repeal the 3% Withholding Provision.”  The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) added section 3402(t) to the federal tax code, requiring federal, state and local … Read More

Form 1099-K and Backup Withholding of Federal Tax: A New Threshold Established by the IRS

Form 1099-K and Backup Withholding of Federal Tax: A New Threshold Established by the IRS

IRS Notice 2011-42 creates a new rule that affects backup withholding of federal income tax on some of the payments that are reportable on Form 1099-K, Merchant Card and Third-Party Network Payment.  2011 is the first year for Form 1099-K reporting under section 6050W of the Internal Revenue Code.  Payment settlement entities are required to … Read More