Government Contracting
New Law Repeals 3% Withholding for Contractors, Expands WOTC Tax Incentives for Hiring Veterans
On November 21, 2011, President Obama signed into law the Three Percent Withholding Repeal and Job Creation Act, or H.R. 674 (hereafter, “the Act”). This new legislation repeals a controversial law that would have required federal, state and local government entities with total annual expenditures of $100 million or more to withhold three percent of certain payments for goods and services to government contractors and vendors. The Act also expands the Work Opportunity Tax Credit (“WOTC”) by creating the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit to encourage employers to hire unemployed and disabled veterans. Withholding Relief. Read More.
New Law Repeals 3% Withholding for Contractors, Enhances Tax Incentives for Hiring Veterans
On November 21, 2011, President Obama signed into law the Three Percent Withholding Repeal and Job Creation Act, or H.R. 674 (hereafter, “the Act”). This new legislation repeals a controversial law that would have required federal, state and local government entities with total annual expenditures of $100 million or more to withhold three percent of certain payments for goods and services to government contractors and vendors. The Act also expands the Work Opportunity Tax Credit (“WOTC”) by creating the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit to encourage employers to hire unemployed and disabled veterans. Withholding Relief. Read More.
New OMB Policy Encourages Prompt Payment of Small Businesses
On September 14, 2011, the Office of Management and Budget (OMB) issued a policy statement concerning prompt payment of small business contractors. According to the policy statement, agencies are to “exercise their Prompt Payment Act (PPA) authority, to the full extent permitted by law, to establish an earlier, accelerated date for their making of payments to small business contractors.” In this regard, OMB noted that the PPA generally requires agencies to make invoice payments within 30 days after receipt of a proper invoice. However, the PPA allows agencies to make invoice payments earlier. OMB is advising agencies to reduce the. Read More.
U.S. Government Seeks Range of Ideas Regarding Disposition of Real Estate Owned Properties
The Federal Housing Finance Agency ( FHFA ), in consultation with the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development ( HUD ), has issued a Request for Information (RFI) to solicit ideas for sales, joint ventures, or other strategies to augment and enhance the Real Estate-Owned (REO) asset disposition programs of Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The RFI is part of an effort designed to explore alternatives that will facilitate the current and future disposition of REO, improve loss recoveries compared to individual retail REO sales, help stabilize neighborhoods and local home values, and improve the supply of rental housing where feasible and appropriate.. Read More.
New 3% Withholding on Payments for Sales and Services to Government Entities Delayed Until 2013
On May 6, 2011, the Internal Revenue Service (IRS) released final regulations that delay the mandatory three percent (3%) withholding on certain payments made by government entities. In general, the 3% withholding, which was scheduled to go into effect beginning next year, will apply to each individual payment over $10,000 made from federal, state and local government entities to persons providing property or services. Under the final regulations, the new withholding requirements will apply to payments made after December 31, 2012. For existing contracts that are not materially modified, the new withholding requirements will not apply until payments made after. Read More.
Register Now for CB&H’s GovCon Webinar – What to Do in the Event of a Federal Shutdown
A CB&H Webinar Series for Government Contractors It is highly possible that the U.S. Government will shutdown at midnight, Friday, April 8th. Will you be prepared? What should you do? Due to popular demand, Cherry, Bekaert and Holland’s Government Contractor Services Group will be hosting two webinars in the week ahead to help you minimize the financial impact of a federal shutdown on your organization. This program is designed for Owners, CEOs, COOs, CFOs, and Controllers of government contractors only. There is no fee associated with registration for either webinar. Shutdown Planning – Are You Prepared? Wednesday, April 6, 2011 | 11:00 am – 12:00 noon EST It has been over 15. Read More.