AICPA Official Praises Congress’ Move to Trash Withholding Requirement
The American Institute of Certified Public Accountants Vice-President Edward Karl has applauded the Congress’ vote to repeal the 3 percent withholding requirement.
“The AICPA commends Congress for recognizing that it makes sense to repeal the requirement that generally requires federal, state and local governments to withhold 3 percent on payments made to government contractors, as well as on certain other payments such as Medicare,” Karl said.
“The overwhelming votes by the U.S. House of Representatives and U.S. Senate to pass H.R. 674, which would repeal the requirement passed by Congress in 2005, further demonstrate the widespread support for repeal. Congress delayed the effective date of the provision in 2009 from Jan. 1, 2011 to Jan. 1, 2012, and the Internal Revenue Service issued final regulations on May 9 that included a further one-year delay in the effective date until Jan. 1, 2013.
“The AICPA has strongly supported H.R. 674 and efforts to repeal the 3 percent withholding requirement. With today’s vote, the bill can move to the White House. The AICPA urges President Obama to quickly sign H.R. 674 into law.”
Karl is responsible for the review, formulation, and submission to Congress, the Treasury Department, and the Internal Revenue Service of technical and policy recommendations for improvement of the federal tax process. He serves as a principal liaison for the AICPA with the Internal Revenue Service.
Karl is also responsible for tax ethical issues including management of the AICPA’s tax standards, the Statements on Standards for Tax Services. He oversees the Tax Division’s delivery of services to members which focuses on helping AICPA members provide the highest quality professional tax services.