TCI Tax Intelligence: WOTC Transition Relief
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 screen applicants or did not submit eligible 8850s to the state workforce agencies for certification. For many employers, it was difficult to continue to invest time and resources into a screening process without the certainty of the program being renewed.
The IRS has issued Notice 2015-13 that allows for “transition relief” for employers to file WOTC form 8850 for any hires made between Jan 1, 2014 and December 31, 2014. The IRS is forgoing the normal 28-day filing deadline for WOTC to allow employers to capture any missed tax credits that may have gone unclaimed while the program was uncertain. Notice 2015-13 gives specific relief for two provisions of the WOTC program. First, it allows employers to retroactively screen applicants hired during the applicable time period. Second, it allows employers to satisfy the 28 day timeline for submitting the 8850 for certification so long as the application is made by April 30, 2015.
Notice 2015-13 gives specific relief for two provisions of the WOTC program. First, it allows employers to retroactively screen applicants hired during the applicable time period. Second, it allows employers to satisfy the 28 day timeline for submitting the 8850 for certification so long as the application is made by April 30, 2015.
WOTC certification requests for all hires made during the transition period can be filed until April 30, 2015. Equifax offers eSignature on both our phone-in screening system and online screening application. Any individuals who are identified as possibly credit-eligible can now electronically sign a fully compliant tax credit screening without the need for paper forms to be processed or managed, which may lead to a more efficient and valuable process. If your company is interested in receiving more information on how you may benefit from this notice, please contact Pete Krieshok of Equifax Workforce Solutions at 314-214-7325 or by email firstname.lastname@example.org.
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