Government Withholding Relief Coalition


The Government Withholding Relief Coalition

GWRC was formed to repeal a sweeping new requirement mandating that federal, state, and local governments withhold 3% from payments for goods and services.  This unprecedented withholding mandate will affect government contracts as well as Medicare payments, and Farm payments.  The effective date was initially set for January 1, 2011, by Section 511 of the Tax Increase Prevention and Reconciliation Act (P.L. 109-222) that was signed on May 17, 2006.  It was delayed one year to January 1, 2012 by the American Recovery and Reinvestment Act (P.L. 111-5) that was signed into law on February 17, 2009. On May 9, 2011, the IRS issued the final rule, delaying implementation for one year.

Latest News

Coalition Letters

Industry Cost Impact Study from March 2011: Estimates Total Compliance Costs between $75 Billion and $15 Billion Depending on Outcome of Implementing Regulations (only costs assocated with contracting)

Department of Defense Cost Impact Study from April 2008: Estimates Compliance Costs to Department at $17 Billion

IRS Rulemaking Implementing the 3% Tax Withholding

Resources

Material

Bills to Repeal Provision