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FLASH ALERT! WOTC: IRS Notice 2015-13: Providing Transition Relief For Employers Submitting Late WOTC Applications



We Have Been Waiting For This!

The IRS has released IRS Notice 2015-13, which provides transition relief given the late retroactive renewal of the Work Opportunity Tax Credit program in December 2014. Notice 2015-13 waves the 28-day deadline for submitting IRS Form 8850 (the WOTC Pre-screen Notice) for qualifying employees hired in 2014.  The extended deadline for submitting the applications for affected employees is now April 30, 2015.

From the Notice:

 

Because [Tax Increase Prevention Act of 2014] extended the WOTC retroactively for 2014 for members of targeted groups, employers need additional time to comply with the requirements of § 51(d)(13)(A). Accordingly, a taxable employer that hired a member of a targeted group (as defined in §§ 51(d)(2) through (10)), or a qualified tax-exempt organization that hired a qualified veteran described in § 51(d)(3), on or after January 1, 2014, and before January 1, 2015, will be considered to have satisfied the requirements of § 51(d)(13)(A)(ii) if it submits the completed Form 8850 to the appropriate DLA to request certification not later than April 30, 2015.   

A timely request for certification does not eliminate the need for the employer to receive a certification before claiming the credit.

What does this mean in practical terms?

• Employers who were sitting on the fence in 2014 may now submit WOTC applications for employees hired in 2014.
• Moreover, employers who were actively screening and submitting WOTC applications during 2014 — but who declined to submit one or more applications because the 28-day deadline had been missed — may now reconsider and submit those “late” applications.
• All applications for employees hired in 2014 must be submitted on or before April 30, 2015.

 

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Mr. Larson has advised clients across the country in a variety of federal, state and local tax matters. His experience includes a wide range of industries including manufacturing and software, banking and finance, biotechnology, hospital management, non-profit organizations, commercial office leasing, restaurants, education, security services, oil and gas, telecommunications, paper manufacturing, and sports and entertainment.

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