President Signs 3 Percent Withholding Repeal and Job Creation Act

President Obama signed the Three Percent Withholding Repeal and Job Creation Act on November 21. The new law repeals three percent withholding on government contractors and expands tax incentives to encourage employers to hire military veterans. The new law also expands the IRS’s continuous levy authority, extends authority for the U.S. Department of Veterans Affairs (VA) to obtain information from the IRS and directs the Treasury Department to prepare a report on how to reduce the tax gap owed by federal contractors. HR 674 passed overwhelmingly in the Senate on November 10 by a vote of 95 to 0 and in the House on November 16 by a vote of 422 to 0.

The $12.8 billion cost of repeal of government withholding and the veterans’ tax incentives is off set by modifying the calculation of modified adjusted gross income (AGI) for determining certain federal health care program eligibility, as well as delaying scheduled reductions in fees for VA mortgage applications.

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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