President Obama and Congress want to repeal a law aimed at obtaining tax revenue from federal contractors who fail to pay their taxes. The bill is scheduled for a vote in the House on Thursday.
Under the law, local, state and federal governments are required to withhold 3 percent of what is owed to contractors for goods and services that would be applied to their total tax bill at the end of the year. This requirement has been delayed twice and now may be scrapped altogether.
The purpose of the law is to assure that contractors pay all of their taxes. Originally, bipartisan proponents of the bill were concerned by the amount of unpaid taxes owed to the government by contractors, which the Treasury Department estimated to be $290 billion.
Opponents to the law believed the measure would affect the contractor’s ability to hire workers and force them to raise the prices they must charge the government. The move to repeal will give people the appearance that Congress is working on preserving jobs.
The problem of tax evasion or avoidance is a problem and offenders are vigorously pursued by the IRS and sometimes face criminal charges which require the defense of a tax attorney. Owing taxes to the government means fines, liens and wage garnishment but a tax lawyer will make certain to prevent these measures.
All businesses can benefit from the knowledge of a tax lawyer, who can help them decide on which tax structure work best.
