Comment on FR Doc # 2011-10758

This withholding regulation would cause signifcant administrative burdens on both the government entitiy as well as the the vendors. Software programs would have to be re-written, administration of sending the withholding payments to the IRS would soon become an administrative nightmare and coupled with reporting, answering vendor questions would cause additional manpower hours that are not available witht he limited budget. Vendors that would receive this large amount of payments are either a corporation which has in place at the State levels to file tax returns to have the franchise or are already reported to the IRS via a 1099 if they are not. Adding the additional burden of withholding tax that would probably be refunded is unreasonable and cause additional government bureaucracy that is not needed and the existing reporting system is sufficient. I would venture no additional revenues would be generated, just more cash flow into the IRS to hold until payment of refunds are made