Deadline extended to April 30 for WOTC employers to submit Form 8850
The IRS recently issued Notice 2015-13 to provide transition relief to employers claiming the section 51 Work Opportunity Tax Credit (WOTC). Many of the provisions of the WOTC were retroactively extended by the Tax Increase Prevention Act of 2014 for one year through Dec. 31, 2014. The WOTC allows employers a credit for a portion of wages paid to certain new employees who are qualified veterans or members of disadvantaged groups.
Before an employer can claim the credit, it must obtain certification that an individual is a member of a targeted group. To obtain this certification, an employer must (1) complete a pre-screening notice for each individual on or before the day the individual is offered employment and (2) submit Form 8850 “Pre-Screening Notice and Certification Request for the Work Opportunity Credit” to a State employment security agency known as a Designated Local Agency (DLA) no later than the 28th day after the individual begins work. Since the WOTC was retroactively extended to apply to 2014, employers needed relief from this 28-day submission requirement in order to claim any credits retroactively available.
For more information, read the full article or contact Kathy Ettensohn, CPA, MST or Mike Vogel, CPA at 800.880.7800.
