Deadline for Work Opportunity Tax Credit Program is April 30
The IRS reminds taxpayers that transition relief is available for employers claiming the Work Opportunity Tax Credit (WOTC) in 2014. Originally enacted on December 19, 2014, the Taxpayer Increase Prevention Act of 2014 retroactively extended the WOTC. The transition relief allows companies that did not have a WOTC program in place during 2014 to retroactively take advantage of the program.
The WOTC is a Federal credit for employers that hire individuals from specific targeted groups. Among the most common targeted groups are Veterans, Designated Community Residents and TANF/SNAP/SSI recipients. Credits range from $1,200 – $9,600 per employee with the average credit $1,200 – $3,000 per employee.
The IRS guidance provides employers that hired members of WOTC targeted groups, including qualified veterans, on or after January 1, 2014 and before January 1, 2015 will be considered to have satisfied the completion and submission requirements for IRS Form 8850, if the completed form is submitted to the appropriate state agency no later than April 30, 2015.
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