Withholding on government
payments delayed. For payments made after Dec. 31, 2011, governments at the federal, state
and local levels will have to deduct and withhold tax in an amount equal to 3% of any payments they make 
to a person providing property
or services. However, the IRS has announced that withholding and reporting requirements will not apply to any payment made by payment card
, including credit cards, debit cards, and stored value cards
, for any calendar year beginning earlier than at least 18 months
from the date further guidance on this subject is finalized. Thus, the new requirements will not apply to payment card payments for the 2012 calendar
year.
payments delayed. For payments made after Dec. 31, 2011, governments at the federal, state and local levels will have to deduct and withhold tax in an amount equal to 3% of any payments they make to a person providing property or services. However, the IRS has announced that withholding and reporting requirements will not apply to any payment made by payment card, including credit cards, debit cards, and stored value cards, for any calendar year beginning earlier than at least 18 months from the date further guidance on this subject is finalized. Thus, the new requirements will not apply to payment card payments for the 2012 calendar year. IRS source
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