WIPP is a part of the Government Withholding Relief Coalition. The coalition just sent a memo stating that:
Government Withholding Relief Coalition
The IRS has issued their proposed rule implementing the 3% Tax Withholding. It will appear in the Federal Register tomorrow, December 5th. We will discuss this at the meeting on December 16th as well.
http://edocket.access.gpo.gov/2008/pdf/E8-28789.pdf
IRS PROPOSES RULES ON WITHHOLDING UNDER TAX CODE SECTION 3402(T)
The Internal Revenue Service Dec. 4 issued proposed rules (REG-158747-06) relating to withholding under tax code Section 3402(t).
IRS said the proposed regulations reflect changes in the law made by the Tax Increase Prevention and Reconciliation Act of 2005 (Pub. L. No. 109-222) that require federal, state, and local government entities to withhold income tax when making payments to persons providing property or services. The proposed regulations provide guidance to assist the government entitiesin complying with Section 3402(t), IRS said.
The regulations, which will appear in the Dec. 5 Federal Register, also provide certain guidance to persons receiving payments for property or services from government entities, IRS said.
