Unallowability of Costs Associated With Foreign Contractor Excise Tax

FAC 2005-65; FAR Case 2011-011

By: Ryan Byrd

This final rule amends FAR 31.205-41, 52.229-3, 52.229-4, 52.229-6, and 52.229-7 to implement certain requirements of section 301 of the James Zadroga 9/11 Health and Compensation Act of 2010 (Pub. L. 111–347), which imposes a 2-percent excise tax on certain federal procurement payments to foreign persons. The law amended the Internal Revenue Code by adding a new section 5000C.

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