IRS Extends Filing Deadline for Work Opportunity Tax Credit
Employers wishing to take advantage of the work opportunity tax credit (WOTC) will be pleased to know they have more time to file the necessary paperwork. Earlier this month, the IRS announced an extension for employers filing paperwork to claim the WOTC for targeted employees.
This credit was extended retroactively to January 2015, but there were no guidelines in place regarding how employers would still be able to timely file forms for employees hired during that time. This would apply for employees of a targeted group hired between January 1, 2015 and May 31, 2016. It is important to note that long-term unemployed employees only qualify if hired between January 1, 2016 and May 31, 2016
Typically, employers would need to file Form 8850 within 28 days of hire. The extension would allow employers to meet timely filing requirements as long as they file by June 29, 2016.
To read the full article, go to http://www.journalofaccountancy.com/news/2016/mar/work-opportunity-tax-credit-deadlines-201614010.html