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B-124720,B-129346 1 (1981-09-23)

handle is hein.gao/gaobadjsz0001 and id is 1 raw text is: OECIE31ON UITE, FILE: B-124720 and B-129346 MATTER DIGEST: -- ILIK k Q TAE!'COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. 0. C. 20548 DATE: September 23, 198.1 OF: Authority of General Accounting Office to Withhold Taxes on Backpay Judgments Against the~.United States In certifying judgments against United States pursuant to 31 U.S.C. § 724a, we have no authority to withhold any taxes from backpay judgments against United States that specify a dollar amount unless judgments specifi- cally directs such withholding or parties involved agree to deduction of specified amount of withholding tax. Although we agree that amounts awarded to employees as backpay do constitute taxable wages, we do not agree, and cases do not support, Internal Revenue Service contention that GAO may withhold money from backpay judgments that do not mention withholding. Since our authority to certify judgments against U.S. is largely ministerial, we cannot certify a judgment for payment other than strictly in accordance with its terms. B-124720/B-129346, August 1, 1961, affirmed. The Comissioner of Internal Revenue asks that we reconsider and modify our decision (B-124720/B-129346, August 1, 1961) that this Office is * * *without authority to deduct, or to direct the deduction of, any amount for income withholding tax from Court of Claims judgments for salary, unless, of course, the judgment should specifically so provide. Subsequently (in 44 Comp. Gen. 729 (1965)) we extended that opinion by holding that our office was similarly without author- ity to withhold social security taxes from Court of Claims judgments for backpay and allowances. (Although our Office has never issued a formal opinion with respect to our authority to withhold from judgments rendered by District Courts, such judgments are treated in essentially the same manner.) Internal Revenue Service (IRS) considers wages to be taxable income subject to withholding tax, whether paid voluntarily, under a settlement agreement, or pursuant to a judgment. Furthermore, IRS believes that the responsibility of complying with the withholding tax requirements when backpay judgments are obtained against the United States rests with the General Accounting Office, since GAO is resp3on- sible for certifying payment and is in control of the appropriated fund * * * used to pay such judgments. (At our request, the Assistant Attorney General, Tax Division, Department of Justice, provided his views on this matter. He agrees generally with IRS.) Having reconsidered this question, it remains our view that our decision of August 1, 1961, was essentially correct and that unless r1~Li2 1~ * -~

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