Tax withholding obligations shifting collection burdens to businesses, creating compliance costs and exposure to disallowance, interest, and penalties.
Tax withholding rules increasingly compel businesses and professionals to perform State tax collection functions without compensation, imposing significant compliance costs and exposing small and loss making enterprises to disallowance of expenditures, deferred relief until payment of withheld tax, compounded tax liability, interest, and penalties, as well as filing sanctions for withholding statements. (AI Summary)