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 Tax Hikes Act of 2015, also known as the PATH Act. In March the IRS issued Notice 2016-22, providing guidance and transition relief for employers claiming the WOTC.
The PATH Act, which Congress passed last December, amended the Tax Code to extend the WOTC through Dec. 31, 2019. The PATH Act also amended the Tax Code to expand the “targeted groups” of individuals, the employment of whom may qualify the employer for a credit listed in the statute, to include qualified long-term unemployment recipients, people who have remained unemployed for 27 weeks or more.
This notice provides additional transition relief for employers claiming the Work Opportunity Tax Credit (WOTC) under §§ 51 and 3111(e) of the Internal Revenue Code (Code), as extended and amended by the Protecting Americans from Tax Hikes Act of 2015, Pub. L. No. 114-113, div. Q (the PATH Act). Specifically, this notice expands and extends by three months the transition relief provided in Notice 2016-22 (2016-13 IRB 488) for meeting the 28-day deadline in § 51(d)(13)(A)(ii) of the Code. This notice applies to employers that (1) hire members of targeted groups (other than qualified long-term unemployment recipients) on or after January 1, 2015, and on or before August 31, 2016, or (2) hire members of the new targeted group of qualified long-term unemployment recipients on or after January 1, 2016, and on or before August 31, 2016. This notice does not otherwise modify or add to the guidance provided under
Notice 2016-22.
Contact CMS today to find out how we can help you make the most of the Work Opportunity Tax Credit’s available. Don’t miss out on savings! We’ve been helping companies maximize their tax credits since 1997. How much can we save you? Call 800-517-9099 or visit our website at www.cmswotc.com