The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.
The Work Opportunity Tax Credit (WOTC) is authorized until December 31, 2020 (Section 143 of Division Q of P.L.116-94 -- Further Consolidated Appropriation Act, 2020). The WOTC fact sheet offers an overview of key information about the tax credit.
For additional information about WOTC and eligible targeted groups, see https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit .
- IRS Extends the Due Date for the IRS Form 8850
The Department of the Treasury and the Internal Revenue Service (IRS) recently issued Notice 2020-23. In addition to other relief, the notice extends the due date for certain time sensitive acts specified in Revenue Procedure 2018-58, 2018-50 IRB 990. Under the notice, a time sensitive act due to be performed on or after April 1, 2020, and before July 15, 2020, can be performed by July 15, 2020. This includes the requirement, for an employer seeking to qualify to claim the Work Opportunity Credit, to send IRS Form 8850 to a State Workforce Agency no later than 28 days after an individual begins working for the employer. As a result, under the notice, employers that otherwise would be required to submit IRS Form 8850 to a State Workforce Agency on or after April 1, 2020, and before July 15, 2020, have until July 15, 2020 to submit IRS Form 8850. See Notice 2020-23 for additional information at: https://www.irs.gov/newsroom/irs-extends-more-tax-deadlines-to-cover-individuals-trusts-estates-corporations-and-others
- Empowerment Zone Locator Application
The U.S. Department of Labor (DOL) is currently testing an alternative EZ Locator application which is available on our website at: https://www.doleta.gov/business/in-centives/opptax/resources/.