Update on 2017 Designated Community Resident, Empowerment Zone (EZ):
On February 9, 2018, empowerment zones were reauthorized under the Bipartisan Budget Act of 2018. The IRS has issued IRS Notice 18-47 (PDF) explaining how a state or local government is deemed to extend the termination date designated in an empowerment zone nomination until December 31, 2017. The U.S. Department of Labor has authorized WOTC State Coordinators to begin processing 2017 applications that were submitted in a timely manner for the Work Opportunity Tax Credit (WOTC), D1/Empowerment Zone. A filing extension for this target group was not granted.
Per Brian Kelly, CMS Managing Partner: “The legislation is really only for one year look back. So if you didn’t submit the IRS Form 8850 with the 28 day rule you missed out.”
This is another great example to use a WOTC processing service like CMS, because even though the legislation was in hiatus we did not stop processing. CMS kept screening all our clients’ new hires, and submitted for empowerment zones within the 28-day window. Our clients with qualifying employees will receive the tax credits.
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