On Friday, the IRS released notification that it was extending the time employers who want to claim the work opportunity tax credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit (Notice 2013-14 PDF).
Form 8850 is normally due within 28 days of an employee’s start date. The retroactive extension of the WOTC credit had raised questions about how employers who hired eligible employees in 2012 and early 2013 would be able to timely file the form and certify those employees.
Under the extension, employers who hire a member of a targeted group on or after Jan. 1, 2012, and up to March 31, 2013, will be considered to have timely filed Form 8850 if it is filed with the designated local agency by April 29, 2013.
Transition relief for taxable employers that hire members of targeted groups (other than qualified veterans)
A taxable employer that hires a member of a targeted group on or after Jan. 1, 2012, and on or before March 31, 2013, will be considered to have satisfied the requirements of Sec. 51(d)(13)(A)(ii) if it submits the completed 8850 to the DLA to request certification no later than April 29, 2013.
Transition relief for all employers that hire qualified veterans
An employer that hires any qualified veteran described in Sec. 51(d)(3) on or after Jan. 1, 2013, and on or before March 31, 2013, will be considered to have satisfied the requirements of Sec. 51(d)(13)(A)(ii) if it submits the completed Form 8850 to the DLA to request certification not later than April 29, 2013.
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