The tax extenders and government funding legislation passed the House and Senate today and is now on its way to the President for his pen. Of primary interest to WOTC Planet readers is the 5-year extension of the Work Opportunity Tax Credit (WOTC) with Vow to Hire Heroes Act. These will become law upon receiving the President’s signature.
From USA Today, “Senate clears massive spending bill, tax measures“.
You can read the bill here, at least until they move the file. For the WOTC extension and revision, scroll to page 38 of the PDF. (more…)
As reported earlier this month, the 2014 fiscal budget as proposed by the White House includes a proposal to make the VOW to Hire Heroes tax credits permanent. It would accomplish this by giving permanency to the entire Work Opportunity Tax Credit (WOTC) program — of which the VOW tax credits are an integral part. (more…)
An article published today in The Saratogian by Paul Post outlines the recent renewal of the Returning Heroes and Wounded Warriors tax credits (as target groups within the Work Opportunity Tax Credit program). The so-called American Taxpayer Relief Act of 2012 reauthorized the WOTC program through December 31, 2013. (more…)
This update from Paul Suplizio, President of the WOTC Coalition, offers some additional details about the fiscal cliff bill passed by the Senate late tonight.
Contrary to my earlier observations, Paul states that the bill DOES include VOW to Hire Hero provisions in its extension of the Work Opportunity Tax Credit. Hopefully, I was wrong. I like Paul’s version better.
Paul also makes some important observations about recent Hurricane Sandy relief efforts — including a proposal to expand the WOTC Program with a new Hurricane Sandy target group. (more…)
A Little History: This is Nothing New. The Work opportunity Tax Credit (WOTC) was created by the Small Business Job Protection Act of 1996. This Act authorized WOTC for a 12-month period. Then, in 1997, WOTC was re-authorized and extended for 9 months, followed by an additional 12 months in 1998. This process of expiration and re-authorization has been repeated by Congress nine times during the past 12 years. (more…)
Catching up with the VOW to Hire Heroes Act, which was signed by President Obama in November of last year, the Internal Revenue Service has issued an updated Form 8850 and some very important guidance.
Disconnected Youth: Although not unexpected, I should note that in preparing the updated IRS 8850 Pre-screening Notice, the IRS has removed the questions related to qualifying Disconnected Youth. This category expired on December 31, 2010.
We’ve been clinging to the hope that it would be added-back with the extension of WOTC. I personally have not given up on that hope. Also, if I am not mistaken, the Department of Labor’s current instructions to State Workforce Agencies still requires them to reserve disconnected youth applications on file pending future instructions.
Notice 2012-13: Notice 2012-13 provides guidance on a number of important issues and should not be overlooked. I suggest a thorough reading. Major topics covered include:
- Background of the new veterans categories
- Transition relief (a grace period extending the 28-day submission deadline for IRS 8850 for qualified veterans hired between November 22, 2011 and May 22, 2012)
- The use of electronic signatures for IRS 8850
- Signing or filing IRS 8850 by FAX transmission
- Guidance for tax-exempt organizations claiming WOTC
Request for Comments: In addition to the guidance provided by the IRS on these topics, the IRS is also requesting comments about (1) alternative methods for certification of qualified veterans and (2)alternative methods of filing Form 8850.
In summary, with this notice the IRS has given us a lot to think about and a lot of work to do.
The following instructions are copied directly from the document recently published by the US Department of Labor.
Vow to Hire Heroes Act – Work Opportunity Tax Credit Provisions: Interim Instructions for State Workforce Agencies and Employers
On November 21, 2011, the President signed into law the “Vow to Hire Heroes Act”, which amends and expands the definition of Veteran target groups for the Work Opportunity Tax Credit (WOTC). These provisions became effective the day after the President signed the Act into law (November 22, 2011). (more…)
Thank you to Rik Moore of the National Telecommuting Institute, Inc. for bringing this to my attention early last week.
The US Department of Labor has offered new guidance bringing into focus the WOTC provisions of the recently passed Vow to Hire Heroes Act of 2011. A summary of WOTC-related provisions from the act has been published on the Department of Labor’s website. The following is copied directly from that document. Please download the entire document in order to see footnotes and introductory content not included here. (more…)