WOTC Wednesday FAQ Brian Kelly

WOTC Wednesday: What is a Designated Community Resident?

CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit. Today’s WOTC Wednesday question: What is a Designated Community Resident? CMS Responds: The Designated Community Resident falls under the HUD guidelines of federal Empowerment Zones and Rural Communities. The tax credit value is up to $2,400 if an employee actually lives in one[…]

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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,[…]

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WOTC FAQ

WOTC Questions: How do I figure out if a new hire lives in an empowerment zone?

At CMS, as Work Opportunity Tax Credit (WOTC) experts and service providers since 1997, we receive a lot of questions via our website’s chat box: CMS Says: To qualify under the Designated community resident category, an employee is at least age 18 but not yet age 40 and lives in either an Empowerment Zone, or Rural Renewal[…]

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WOTC Target Groups: Designated Community Resident

Target Group Name Designated Community Resident Target Group Definition An 18-39 year-old who is a resident of one of the federally designated Renewal Communities (RC), Empowerment Zones (EZ), Enterprise Communities (EC) or Rural Renewal Counties (RRC). (There are three designated areas in PA: parts of Philadelphia and all of Venango and Warren Counties). For verification[…]

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