Reps Blum and Aguilar Support Renewal of Tax Extenders

In a duo of Dear Colleague letters published today, Representatives Rod Blum (R-IA) and Pete Aguilar (D-CA) have implored both their colleagues in the House of Representatives and their leadership to address the expired and expiring tax provisions in the overall tax extender group – including WOTC. In their letters, the congressmen take note that last year’s [Read More…]

WOTC: Department of Labor Issues Updated 9061

Last week, the Department of Labor (DOL) issued an updated version of the 9061 “Individual Characteristics Form (ICF) for Work Opportunity Tax Credit.”  Along with the 8850, or “Pre-Screening Notice and Certification Request for the Work Opportunity Tax Credit,” the 9061 must be submitted to the State Workforce Agencies to request a WOTC certification.  The [Read More…]

WOTC Legislation: Call to Action

The legislative authority of the Work Opportunity Tax Credit (WOTC) expired on January 1, 2015.  The program is currently in a hiatus period and requires reauthorization by act of Congress.  The Extender’s Coalition, a bi-partisan legislative advocacy organization, has prepared an electronic letter imploring members of Congress to pass a “tax extender bill” – including a [Read More…]

Senate Finance Committee Passes Tax Extender Package

Beginning on July 21, the Senate Finance committee began their process of a “markup” of a tax extenders bill.  Recall that WOTC – a key element of the tax extenders, has been in hiatus since January 1, 2015.  The text of the markup proposal can be found here.  A markup is an important step in [Read More…]

WOTC Update: Tax Reform and Tax Extenders

Tax reform is sometimes mentioned as a potential cause of delay for the renewal of WOTC and other tax credits.  That is, if tax reform were to happen, then it is conceivable that, as part of that process, various tax credits would cease to be renewed in favor of a reduction and simplification of overall [Read More…]

Tom Reed Introduces Permanent WOTC Renewal Bill

Tom Reed (R-NY) has introduced  H.R.2754  to amend the Internal Revenue Code of 1986 to make the Work Opportunity Tax Credit (WOTC) permanent.  While the text of the bill is not yet available, Mr. Reed and his co-sponsor, Charles Rangel (D-NY) sent a “Dear Colleague” letter to Congress imploring them to co-sponsor this important bill.  Says [Read More…]

Department of Labor Issues WOTC Retro and Hiatus Guidance

The Department of Labor has issued Training and Employment Guidance Letter 28-14 detailing “Reauthorization of the Work Opportunity Tax Credit (WOTC) Program for 2014 and Authorization Lapse for 2015.  As we have seen in previous hiatus situations, the State Workforce Agencies (SWA) are instructed to continue processing all timely filed certification request for individuals hired [Read More…]

TCI Tax Intelligence: WOTC Transition Relief

Situation The Work Opportunity Tax Credit (WOTC) program had been in hiatus since Jan 1, 2014.  On December 19, 2014, legislation was enacted to extend the WOTC program through December 31, 2014. While many employers may have continued to screen applicants and submit 8850s for certification during that time period, some employers either did not [Read More…]

WOTC Extension: Form 8850 Filing Deadline Extended

Noting that the uncertainty around the Work Opportunity Tax Credit and its prolonged hiatus in 2014 affected employers’ hiring and tax planning strategies, the IRS has issued notice 2015-13 that provides “transition relief” for employers to submit WOTC certification requests for any employee hired between January 1, 2014 and December 31, 2014. The deadline for [Read More…]

WOTC: Processing 2014 Certification Requests

In light of the retroactive renewal of WOTC as part of the Tax Increase Prevention Act of 2014, the Department of Labor has issued internal guidance to the State Workforce Agencies on processing of 2014 certification requests.  The guidance instructs the Workforce Agencies to begin making determinations for all certification requests for hire dates in [Read More…]