Tax Alert

Period to Satisfy WOTC Certification Requirements Extended
(March 20, 2013)

The American Tax Relief Act of 2012 (ATRA) retroactively reinstated the work opportunity tax credit (WOTC), which otherwise expired on Dec. 31, 2011 (Dec. 31, 2012, for qualified veterans). Under ATRA, WOTC is now available for 2012 and 2013 for businesses that hire employees in one of the following targeted groups:

  • Qualified Temporary Assistance to Needy Families recipients
  • Qualified veterans
  • Qualified ex-felons
  • Designated community residents
  • Qualified summer youth employees
  • Vocational rehabilitation referrals
  • Qualified Supplemental Nutrition Assistance Program (SNAP) recipients
  • Qualified Supplemental Security Income (SSI) recipients

An employer normally must take one of the following steps to claim the credit:

  • Obtain certification from a designated local agency (DLA) that the employee is a member of a targeted group.
  • Complete a prescreening notice (Form 8850, "Pre-Screening Notice and Certification Request for the Work Opportunity Credit”) on or before the day the individual is offered employment, and submit the form to the DLA to request certification no later than 28 days after the individual begins work.

IRS Notice 2013-14 gives employers until April 29, 2013, to submit Form 8850 to a DLA for qualifying employees hired between Jan. 1, 2012, and March 31, 2013 (Jan. 1, 2013, and March 1, 2013, for qualified veterans). Employers hiring qualified employees after these dates are subject to the regular certification procedures.

Employers who already have filed their 2012 tax return will need to file amended tax returns to claim any newly certified WOTC.


For More Information
David Holets

Lou Miller

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