taxes | The Contracting Education Academy

January 27, 2016 By AMK

DFARS final rule clarifies application of Afghan taxes to contractors

The Department of Defense (DoD) has issued a Final Rule intended to clarify that U.S. defense contractors and subcontractors performing work in Afghanistan, including work on contracts below the simplified acquisition threshold and for commercial items, are not subject to Afghan taxes.

The rule updates the tax provisions of the Defense Federal Acquisition Regulation Supplement (DFARS) to reference the Bilateral Security Agreement signed by the U.S. and Afghanistan in 2014, which was much more explicit in its exemption of U.S. contractors from Afghan tax obligations than assorted prior agreements between various United States agencies and the Afghan Government, which arguably included similar exemptions.

Keep reading this article at: http://www.insidegovernmentcontracts.com/2016/01/dod-final-rule-clarifies-application-of-afghan-taxes-to-contractors/

September 24, 2015 By AMK

Why federal agencies should buy local

Local sourcing is becoming increasingly important in our daily lives, and it’s not just about the food we eat.

When it comes to professional services needed for delivery of government programs at the federal, state and local levels, buying local affords opportunities to improve agility, responsiveness, transparency and cost-effectiveness of service delivery. By investing in businesses whose employees live and pay taxes in the communities served by an agency’s program, the government can see the impact of services firsthand.

Why Local Selection Matters

Depending on the procurement, a local firm may have better service capabilities based on ties to the community. Companies located near the site of a government program often have a better understanding of contract requirements because they have more insight into local needs and culture. In addition, a local provider may be more invested in the success of the program because of emotional ties to the job, while a company based outside the area may view the program as just another contract and revenue source.

Keep reading this article at: http://www.govexec.com/excellence/promising-practices/2015/09/why-federal-agencies-should-buy-local/119972/

April 7, 2015 By AMK

Congress wants contractors to pay their taxes — here’s how

A new bill introduced last week is the latest attempt to prevent tax delinquents from winning federal contracts — or competing for government work at all.

This is the second bill attempting to force contractors to pay their taxes — a nearly identical bill was introduced in the last Congress. It comes despite existing acquisition provisions that require contractors to disclose any tax debts before they bid for work.

“Legislation that codifies, clarifies, and offers minimally invasive improvements to the Federal Acquisition Regulation could be beneficial,” said Alan Chvotkin, executive vice president and general counsel at the Professional Services Council, in testimony submitted for a hearing before the House Committee on Oversight and Government Reform’s government operations panel. “However, such legislation must be tailored carefully to avoid creating new challenges or points of confusion.”

In a nutshell, the latest bill states that any executive agency issuing a solicitation for a contract in an amount greater than the simplified acquisition threshold — currently $150,000 — must require all offerors to certify they have no so-called seriously delinquent tax debt. They also must authorize the Treasury Department to disclose information about that seriously delinquent tax debt.

Keep reading this article at: http://www.bizjournals.com/washington/blog/fedbiz_daily/2015/03/the-hill-wants-to-get-governmentcontractors-to-pay.html?page=all

August 27, 2012 By AMK

Economists doubt government can dodge sequestration

Economists speaking at an Aug. 10 New America Foundation event in Washington, D.C. were not optimistic that legislators will find a way to dodge sequestration, the across-the-board discretionary spending cuts due to be implemented in January 2013 as required by the Budget Control Act.

Reaching a bipartisan agreement on a budget that combines tax increases and cuts enough to waive sequestration is “ambitious but possible if after the election there’s a sense that, ‘Okay, we’re now going to try to get something done,'” said David Wessel, economics editor of The Wall Street Journal and author of Red Ink: Inside the High-Stakes Politics of the Federal Budget.

“We’ll see whether that’s the sense after the election,” he added.

Keep reading this article at: http://www.fiercegovernment.com/story/economists-doubt-government-can-dodge-sequestration/2012-08-20.

August 13, 2012 By AMK

Defense industry leans on Congress: Avoid cuts, even if it means more taxes

The very real possibility that defense programs will suffer deep, across the board spending cuts early next year has major defense contractors and their allies making an unusual plea to members of Congress: Put everything on the table to avoid the so-called sequester — including higher taxes.

That might not sound like an extraordinary ask. But it’s typical for incumbent interests to leave all questions of ways and means to Congress. And given the defense industry’s enormous power and historic alignment with the GOP, it could have enough force to finally break the GOP of its anti-tax absolutism.

Keep reading this article at http://tpmdc.talkingpointsmemo.com/2012/08/defense-industry-leans-on-congress—-avoid-cuts-even-if-it-means-more-taxes.php.

The Department of Defense (DoD) has issued a Final Rule intended to clarify that U.S. defense contractors and subcontractors performing work in Afghanistan, including work on contracts below the simplified acquisition threshold and for commercial items, are not subject to Afghan taxes.

Local sourcing is becoming increasingly important in our daily lives, and it’s not just about the food we eat.

Why Local Selection Matters

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