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IRS 3 Percent Required Withholding - REPEALED
Federal Required Withholding and Reporting
This was repealed on November 21, 2011  Beginning January 1, 2013, all public entities have a federal requirement to withhold 3% tax on payments for goods and services to most vendors to comply with the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA).  The Statewide Financial Management Services (SFMS) section of the State Controller’s Division will modify the Statewide Financial Management Application (SFMA) to comply with this withholding requirement for payments made from SFMA.  Please note the IRS documents have a commencement date of January 1, 2011.  This date was postponed to January 1, 2013.
 
Overview Power Point Presentation  
 
Federal Resources 3% required withholding:
 
Imposition of Withholding on Certain Payments Made by Government Entities  
 
IRS Final Regulations  
 
Interim Guidance on the Application of Section 3402(t) to Payment Card Transactions  
 
NASACT Notice of Repeal (PDF)
 
New Law Repeals 3% Contractor Withholding (PDF) 
 
State of Oregon Resources 3% required withholding:
 
Proposed Senate Bill 59