President Barack Obama signed on Monday a bipartisan bill that repeals the 3% Withholding Tax mandate enacted in the Tax Increase Prevention and Reconciliation Act of 2005.
If it had not been signed into law, on Jan. 1, 2013, the 3% Withholding Tax would have had a negative impact on advisors and their clients that do business with local, state or federal governmental entities.
The Senate passed the bill, 95-0, on Nov. 11, while the full House approved it, 495-16, on Oct 27.