IRS Issues Transition Relief for Two WOTC Target Groups

IRS Issues WOTC Transition Relief for Summer Youth and Designated Community Resident Target Groups

The IRS issued new guidance on December 11th for the Work Opportunity Tax Credit (WOTC) Transition Relief under Internal Revenue Code § 51. The Notice 2020-78 (PDF), provides transition relief by extending the 28-day deadline for employers to request certification from a designated local agency (DLA) that an individual hired on or after January 1,[…]

EEOC Issues Formal Opinion on the Work Opportunity Tax Credit

EEOC Issues Formal Opinion on the Work Opportunity Tax Credit

The U.S. Equal Employment Opportunity Commission has released its first official opinion letter dated April 29, 2020, on the Federal Work Opportunity Tax Credit Form 8850. The letter confirms that employers can legally utilize the Work Opportunity Tax Credit without violating federal anti-discrimination laws. The letter is a written interpretation or opinion of the Commission,[…]

WOTC 28 Day Rule Extended Due to COVID-19

WOTC 28-Day Filing Deadline Extended by the IRS

To help taxpayers, the Department of Treasury and the Internal Revenue Service announced on April 9th that Notice 2020-23 (PDF) extends additional key tax deadlines for individuals and businesses. Last month, the IRS announced that taxpayers have until July 15, 2020, to file and pay federal income taxes originally due on April 15. No late-filing penalty,[…]


IRS Joint Directive on the Work Opportunity Tax Credit per Internal Revenue Code Section 51 (IRC § 51)

A Joint Directive, released by the IRS this week, provides instructions to Large Businesses and International (LB&I) and Small Business and Self Employed (SB/SE) examiners on the treatment of Work Opportunity Tax Credit (WOTC) examinations under IRC § 51. Specifically, this Joint Directive is effective for all LB&I and SB/SE taxpayers claiming the WOTC in[…]

IRS Issues Guidance on Empowerment Zone Extensions

The IRS has issued guidance on empowerment zone termination date extensions: Notice 2018-47 (PDF) explains how a state and local governments are deemed to extend the termination date designated in their empowerment zone nominations.  Under this notice, the termination dates are deemed extended until December 31, 2017.  The extension in this notice follows along similar[…]


IRS Extends Transition Relief for Work Opportunity Tax Credit

Excellent news for Work Opportunity Tax Credit customers. The IRS has issued a notice offering additional transition relief for employers claiming the Work Opportunity Tax Credit. Notice 2016-40 provides additional transition relief for employers claiming the WOTC under Sections 51 and 3111(e) of the Tax Code as extended and amended by the Protecting Americans from[…]


IRS Releases WOTC Transition Guidance

WOTC Transition & Retroactive Screening Back to January 1st. 2015 The IRS has released Notice 2016-22 to provide transition relief for employers claiming Work Opportunity Tax Credits under Section 51 and 3331 (e) of the Internal Revenue Service code. This new ruling will allow CMS and the employers we service to go back to 2015[…]

IRS Gives Guidance On Veterans Tax Credit

The Internal Revenue Service has provided new guidance and forms that employers can use to claim the newly-expanded tax credit for hiring veterans. The VOW to Hire Heroes Act of 2011, as enacted on November 21, 2011, expands the Work Opportunity Tax Credit (“WOTC”) to businesses hiring eligible unemployed veterans. For the first time the[…]