Senate Finance Committee Passes Tax Extender Package

Legislative Update

Beginning on July 21, the Senate Finance committee began their process of a “markup” of a tax extenders bill.  Recall that WOTC – a key element of the tax extenders, has been in hiatus since January 1, 2015.  The text of the markup proposal can be found here.  A markup is an important step in [Read More…]

WOTC Update: Tax Reform and Tax Extenders

WOTC update

Tax reform is sometimes mentioned as a potential cause of delay for the renewal of WOTC and other tax credits.  That is, if tax reform were to happen, then it is conceivable that, as part of that process, various tax credits would cease to be renewed in favor of a reduction and simplification of overall [Read More…]

Tom Reed Introduces Permanent WOTC Renewal Bill

WOTC Capital

Tom Reed (R-NY) has introduced  H.R.2754  to amend the Internal Revenue Code of 1986 to make the Work Opportunity Tax Credit (WOTC) permanent.  While the text of the bill is not yet available, Mr. Reed and his co-sponsor, Charles Rangel (D-NY) sent a “Dear Colleague” letter to Congress imploring them to co-sponsor this important bill.  Says [Read More…]

Department of Labor Issues WOTC Retro and Hiatus Guidance

WOTC retro

The Department of Labor has issued Training and Employment Guidance Letter 28-14 detailing “Reauthorization of the Work Opportunity Tax Credit (WOTC) Program for 2014 and Authorization Lapse for 2015.  As we have seen in previous hiatus situations, the State Workforce Agencies (SWA) are instructed to continue processing all timely filed certification request for individuals hired [Read More…]

TCI Tax Intelligence: WOTC Transition Relief

WOTC transition relief

Situation The Work Opportunity Tax Credit (WOTC) program had been in hiatus since Jan 1, 2014.  On December 19, 2014, legislation was enacted to extend the WOTC program through December 31, 2014. While many employers may have continued to screen applicants and submit 8850s for certification during that time period, some employers either did not [Read More…]

WOTC Extension: Form 8850 Filing Deadline Extended

WOTC hiatus: call to action

Noting that the uncertainty around the Work Opportunity Tax Credit and its prolonged hiatus in 2014 affected employers’ hiring and tax planning strategies, the IRS has issued notice 2015-13 that provides “transition relief” for employers to submit WOTC certification requests for any employee hired between January 1, 2014 and December 31, 2014. The deadline for [Read More…]

WOTC: Processing 2014 Certification Requests

Washington Monument

In light of the retroactive renewal of WOTC as part of the Tax Increase Prevention Act of 2014, the Department of Labor has issued internal guidance to the State Workforce Agencies on processing of 2014 certification requests.  The guidance instructs the Workforce Agencies to begin making determinations for all certification requests for hire dates in [Read More…]

WOTC Back in Hiatus

WOTC hiatus

As of January 1, 2015, the Work Opportunity Tax Credit (WOTC) is back in hiatus.  Previously, WOTC was retroactively renewed to allow certifications for all hires made in 2014.  During hiatus all WOTC form filing rules and guidelines are in force.  The State Workforce Agencies will be accepting certification request, marking them as received timely, [Read More…]

WOTC Renewed!

Barack Obama WOTC Renewal

The President has signed into law the Tax Increase Prevention Act of 2014 that extends the Work Opportunity Tax Credit (WOTC) retroactively from Jan 1, 2014 through December 31, 2014. The measure also includes a retroactive extension of other federal hiring credits – both the Federal Empowerment Zone and Indian Employment Credits. This positive result [Read More…]

Senate Passes WOTC Extension Bill

US Senate

The Senate has passed a WOTC extension bill.  This extension includes a retroactive one year extension (from Jan 1, 2014 to December 31, 2014) of WOTC and other Federal tax incentives including the Indian Employment Credit and The Federal Empowerment Zone Credit.  This bill mirrors the bill passed earlier by the House (earlier coverage here: [Read More…]