The IRS today issued a release (IR-2015-72) reminding employers—both businesses and tax-exempt organizations—planning to claim the work opportunity tax credit (WOTC) for eligible workers who began work during 2014 of an extended deadline of April 30, 2015, for requesting the certification required for certain workers hired in 2014.
The IRS also announced that a revised version of Form 8850 [PDF 70 KB] is now available for use by employers to request certification from their state workforce agency.
As explained in today’s IRS release [PDF 21 KB], the work opportunity tax credit (WOTC) offers tax savings to businesses that hired workers who meet various eligibility criteria including certain veterans, people ages 18 to 39 years living in designated communities in various parts of the country, recipients of various types of public assistance and certain summer youth workers and ex-felons.
The credit is also available to tax-exempt organizations who hired qualifying veterans who began work during 2014.
The tax credit under WOTC was part of the “tax extenders” package enacted in December 2014, retroactively extending the tax credit for one year through the end of 2014.
Normally, an employer must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But because of the December 2014 enactment of the tax extenders legislation extending the WOTC, retroactively to January 1, 2014, the IRS is giving employers extra time—until April 30, 2015—to make this request, for all eligible workers who began work any time during 2014.
© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.