The U.S. House of Representatives overwhelmingly passed H.R. 674 on Oct. 26, 2011, that would repeal the 3% withholding requirement on government contractors and vendors and recipients of Medicare and certain agricultural payments beginning in 2013.
The 2005 legislation, with implementation delayed twice due to growing concern, mandates that federal, state and local governments withhold 3% on payments for property or services as a guard against possible business tax evasion. H.R. 674 now goes to the Senate for consideration.
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