Update On 3% Withholding on Payments to Government Contractors

IRS has issued additional guidance, in the form of frequently asked questions (FAQs), on the Code Sec. 3402(t) requirement for government entities to withhold 3% from nearly all contract payments made to persons providing them with property or services. The FAQs explain the nuts-and-bolts of the withholding requirement, such as which payments are and aren’t subject to withholding, and how withholding applies to contract hold-backs.

Click here for the text of IRS’s FAQs on Section 3402(t) Withholding.

 

Relief for small business in filing Form 3115

International Gifts from Non-Resident Aliens to U.S. Citizens or residents