By Julie Welch and Luke Guettermann
The IRS announced another extension until September 28, 2016 for submitting the paperwork to obtain the Work Opportunity Tax Credit (WOTC). The WOTC is a Federal tax credit available to employers who hire and retain veterans and individuals from other target groups with significant barriers to employment or reside in certain empowerment zones or rural renewal counties. As part of the “Tax Extenders” legislation that was enacted on December 18, 2015, the WOTC was extended retroactively for 2015.
In March, the IRS issued transitional relief related to the retroactive renewal of the WOTC. SEE March 8, 2016 blog “WOTC Transitional Relief.” (http://www.meara.com/mwbblog/wotc-transitional-relief/300) The March relief waived the general 28-day deadline for submitting IRS Form 8850 (WOTC Pre-Screen notice) for qualifying individuals hired in 2015 and early 2016 and extended the deadline to May 31, 2016.
In the recently issued IRS Notice 2016-40, the IRS extended the transitional relief for another three months for workers hired between and including January 1, 2015 and August 31, 2016. The extended deadline is September 28, 2016.
IRS Notice 2016-40: https://www.irs.gov/pub/irs-drop/n-16-40.pdf