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The article analyzes the likely ramifications of the U.S. Renegotiation Act of 1951 on the profits of business enterprises in the country. It is reported that, if the act becomes law then the net profits, before taxes, of business enterprises on any government contracts or subcontracts are likely to be 10% or less. It is reported that, the act also has a provision of setting up of an independent renegotiation board of five members.

The author, a Maryland state legislator, discusses a bill under consideration in the state providing a tax break, including a retroactive component, to defense contractor Lockheed Martin, as a refund for its payment of a county hotel room rental tax for its guests at its Center for Leadership Excellence corporate hotel. He explains his opposition to the bill, noting a portion of the company's tax payments have already been recouped through its government contracts.

The article comments on corporate taxation in the United States as of July 3, 2006. Buffalo Supply earns something shy of 4% pretax on the $46 million a year in hospital supplies it sells, mostly to the Departments of Veterans Affairs and Defense. But beginning in 2011 the government will withhold 3% of its payments to Buffalo, as an advance against income taxes that Buffalo's owner might owe on the company's profits. Buffalo isn't a tax delinquent deserving special heavy-handed treatment. The 3% withholding will apply to all for-profit suppliers to federal, state and larger local governments. A Republican-controlled House-Senate conference committee stuck the withholding tax provision into the bill passed in May to extend lower tax rates on capital gains and dividends. Congress is adopting a series of "revenue raisers" like Buffalo's that it can package as "loophole" closers or enforcement measures. It's a nod to the budget deficit and is also intended to help pay for the extension of existing tax goodies.

Discusses ways for which government contractors can avoid tax audits. Complying with regulations; Adequacy of internal controls; System for cost estimating and proposal preparation; Reliability of the job cost system; Revenue recognition under long-term contracts; Provisions for billings and receivables.

The article discusses the rules of the U.S. Internal Revenue Code Section 199 on domestic production activities deduction (DPAD) for government contractors. The section allows a deduction for such activities equal to 9% of the lesser income of the taxpayer or taxable income determined by other rules. It offers definition of qualified production activities and production property. It also cites the six exceptions to a rule that excludes gross receipts from embedded services as domestic production gross receipts.

The article discusses the eligibility of government contractors for substantial federal and state research and development (R&D) tax credits. Topics discussed include U.S. President Barack Obama's call for the Congress to pass a law for increased infrastructure funding to boost the Highway Trust Fund, criteria that qualified research should meet to be eligible for a tax credit and innovative technologies under the Department of Transportation's Accelerated Bridge Construction (ABC) program.

The article reports on the three percent withholding repeal passed by Congress in the U.S. On November 16, 2011, the House of Representatives voted 422 to 0 to amend the House of Representative (H.R.) 674, which mandates three percent withholding tax payments to companies with contracts with the government and ready for signature by President Barack Obama. Moreover, it is expected to increase government revenue by seven billion dollars until 2016.

This article discusses a tax-lobbying effort in which U.S. government contractors are said to urge lawmakers to rescind part of a 2006 law that will impose withholding tax on their government work. Contractors were particularly concerned about the cost implications of the said law. They claim it will place small companies at a competitive disadvantage. Senator Charles E. Grassley is reportedly consulting with the Joint Committee on Taxation on whether the withholding provision is still needed.

The article focuses on the role played by the shared-interest groups (SIGs) formed by the U.S. General Services Administration's (GSA) Alliant government-wide acquisition contract (GWAC) to ensure that contractors have a voice within the Alliant program. It relates that 35-40 companies take part in these groups, which are devoted to certain aspects of the program, such as Business Development and Events, and Program and Contract Issues. It also notes that the SIGs and Alliant officials' collaboration contribute to Alliant's success.

The article reports on the order by U.S. President Barack Obama for the Internal Revenue Service (IRS) in January 2010 to verify if government contractors pay their taxes accurately and submit report of its findings within 90 days.

The article discusses the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) which require federal and state governments to deduct and withhold 3% of payments made to contractors and vendors. TIPRA was the U.S. government's response to curtail delinquent taxes from government contractors which, according to the Government Accountability Office (GAO), have accumulated significant personal assets. The nature of the tax law has unjustly targeted not only those who owe the government taxes but those who are of good tax standing. Several legislative proposals aimed at repealing TIPRA has been developed including the proposed Federal Acquisition Regulation Case 2006-001 and the Contractor Tax Enforcement Act.

The article reports on the approval of a bill that would debar federal contractors with delinquent federal tax debts over $2,500 and more than 180 days past due by a U.S. House Government Oversight and Reform subcommittee. Subcommittee chairman Edolphus Towns comments on the bill. The measure was sponsored by Towns and received bipartisan support in the subcommittee from Representative Brian Bilbray.

The article reports on the introduction of the Contractor Tax Enforcement Act bill in the U.S. House of Representatives. The proposed bill would require companies that want to do business with the government to agree to release tax information to agencies first. The Act was designed to address concerns raised by a Government Accountability Office (GAO) report which found that approximately 33,000 civilian agency contractors owed the government $3 billion in unpaid taxes.

The article focuses on the economic aspects of retainages in case of contracts which do not fall in the category of long-term contracts. It discusses the issues related to retainages of contractual service arrangements made with the U.S. government in terms of recognizing them in a particular year for tax purposes. It informs that the amount of the retainage is not includible in income until the project has been completed or the condition for payment of retainage is fulfilled.

The article discusses the factors to consider by government contractors to avail the permanent tax savings under the extraterritorial income exclusion rule or the interest-charge domestic international sales corporation rule. The rules look at where goods and services are consumed. Transactions subsidized by the U.S. or an instrumentality of the U.S. is an example of a situation in which exports are not eligible for tax benefits. It highlights opportunities offered by the rules to government contractors.

The article focuses on the availability of the foreign earned income exclusion, foreign tax credits and combat pay exclusion for government contractors in the U.S. According to the Status of Forces Agreements, tax residency in a foreign country is prohibited. The Agency for International Development (USAID) offers subsidized funds, expertise and humanitarian relief to recipient nations. Federal employees and USAID employees are ineligible for the foreign earned income exclusion.

The article reports on the passage of the Taxpayer Assistance and Simplification Act of 2008, a law that promises to make tax preparation easier in the U.S. in April 2008. It states that the law repeals the Private Debt Collection Program of the U.S. Internal Revenue Service (IRS). It offers an overview of the provisions of the law, which includes stopping federal contractors from using foreign subsidiaries to evade Social Security and other employment taxes.