WOTC: Revised certification form; deadline extended to April 30

WOTC: Revised certification form

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.

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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.

Extended WOTC deadline

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.

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