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Extended Deadline for Work Opportunity Tax Credits

Thanks to member firm, CliftonLarsonAllen for sharing this important information:

The work opportunity tax credit (WOTC) can provide a generous tax subsidy for employers that hire various categories of disadvantaged workers, including military veterans.  Normally there is a tight 28 day deadline, under which the employer must request certification of the new hire’s WOTC status from a state workforce agency.  However, for most of 2014, the WOTC was not in the tax law.  It was retroactively placed back into the law for all of 2014 by the so-called “extender” legislation in December.

Some employers may have overlooked the need to stay current on certification of new hires during the period the WOTC was not originally in the law.  Accordingly, the IRS has now provided an extended compliance period to complete the Form 8850 pre-screening notice.  Employers have until April 30, 2015 to request certification for potential WOTC candidates hired during calendar year 2014.  See Tax Bulletin 2015-4 for further details.

This grace period allows any employer to review its new hires for the 2014 year and identify tax credit opportunities that may have been overlooked.

 

 

Related Downloads

2015-4-irs-issues-guidance-claiming-retroactively-extended-wotc.pdf (224.30kB)