TIPRA Tax Increase Prevention and Reconciliation Act

1. TIPRA Tax Increase Prevention and Reconciliation Act

2. What is TIPRA? • Authorized by Public Law No. 109-222, Section 511 in May 2006 • Requires federal, state, and local governmental entities to withhold 3% of specified payments due to any entity providing property or services to government agencies • Implementation date: December 31, 2011

3. Who and What TIPRA Affects • Payments to private vendors for goods/services under government contract • Agencies with > $100,000 of applicable payments • Only payments > $10,000 • Note: TIPRA does not apply to Travel payments

4. Challenges To Implement TIPRA • Unfunded mandate / cost of implementation • Infrastructure not in place to capture and report data • Lack of processes to collect and remit payments • IT system modifications and maintenance • Impact to small business population

5. Status of TIPRA • Pending legislation to repeal TIPRA??? • Implementation date has been pushed back • ARC and Oracle applications are set up to handle TIPRA transactions if necessary

6. ARC’s Role in TIPRA • Test system functionality to ensure compliance • Develop procedures, reporting tools, etc. • Participate in task force workgroup meetings headed by OMB when offered • Business Process Change Group • System Change Group • Legislation Change Group

7. For More Information On TIPRA • If you have specific questions or would like additional information, please contact: Yvette Dunbar 304 480 7053 yvette.dunbar@bpd.treas.gov