Wiley Rein's Kara Sacilotto Weighs in on Repeal of Government Withholding

Kara M. Sacilotto, a partner in Wiley Rein's Government Contracts Practice, was quoted in a Standard Federal Tax Reports article on the Senate's unanimous approval of legislation to repeal a provision of the Tax Increase Prevention and Reconciliation Act of 2005 that imposes a three percent withholding on payments for goods and services to contractors made by federal, state and local governments. The repeal measure was included in a Senate amendment to a House bill and also included tax incentives to encourage employers to hire military veterans. The article reported that the House approved repeal of the three percent withholding measure in October, although the House version did not include the tax incentive provisions of the Senate amendment.

"Given the overwhelming support for repeal of three percent withholding and the reported bipartisan support for the veterans' jobs measure, it is likely any differences between the two chambers will be resolved quickly" said Ms. Sacilotto, "and the three percent withholding requirement will be sent to the President and officially off the books shortly."