Fact Check: States Can Withhold Payments to the Federal Government Under Certain Legal Conditions
What We Know
The claim that states can withhold payments to the federal government under certain legal conditions is supported by specific provisions in U.S. law. According to the Chapter 5000 Withholding Of District Of Columbia, State, City, And County Income Taxes, agreements can be made between states and the Secretary of the Treasury that allow for the withholding of state income taxes from the compensation of federal employees. This is governed by 5 U.S.C. § 5517, which stipulates that such agreements can be established, thereby permitting states to withhold certain payments under specified conditions.
Additionally, the Internal Revenue Service (IRS) outlines that employers, including state entities, are required to withhold employment taxes from their employees, which can include federal income tax withholding. This indicates that states have the authority to manage how taxes are withheld from payments made to federal employees, contingent upon agreements with the federal government.
Analysis
The evidence supporting the claim is robust, as it is grounded in federal statutes and regulations. The primary source, the Chapter 5000, provides clear guidelines on how states can enter into agreements with the federal government regarding tax withholding. This chapter is a reliable source as it is part of the Treasury Financial Manual, which is an official government document.
Furthermore, 5 U.S.C. § 5517, which can be accessed through the U.S. Code, reinforces the legal framework allowing for such arrangements. The law explicitly states that federal agencies may not accept payments from states for services performed in withholding state income taxes, which implies a legal basis for states to manage their tax withholding independently under certain conditions.
While the claim is well-supported by legal texts, it is essential to note that the actual implementation of withholding payments can vary based on specific agreements and the context of the payments involved. However, the existence of such legal provisions indicates that the claim holds validity.
Conclusion
The verdict is True. The claim that states can withhold payments to the federal government under certain legal conditions is substantiated by federal laws and regulations that allow for such agreements. The legal framework established by 5 U.S.C. § 5517 and the Treasury Financial Manual provides the necessary authority for states to manage withholding arrangements with the federal government.
