Have You Received a Letter on the New Withholding? |
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The IRS has sent a letter to larger units of local government to alert them to the new requirement under Internal Revenue Code section 3402(t) to withhold 3% from certain payments beginning in 2011.
The letter was sent to governmental entities that were identified as possibly subject to the new law. These include units of local government that have certain payments of $100 million or more per year.
The letter is advisory only and no response is necessary. It refers to the Proposed Regulations published December 5, 2008, for more information and comment procedures. There is a more detailed article on the provisions this website.
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Page Last Reviewed or Updated: January 08, 2009