Deadlines Looming, WOTC Coalition Asks Treasury Department to Extend Transition Relief for 90 More Days

Paul Suplizio, President of the the Work Opportunity Tax Credit Coalition has authored an official letter to the Department of Treasury urging the Department to extend the time period granted for WOTC applications under Transition Relief.

IRS Notice 2016-22 provides Transition Relief for employers needing more time to process WOTC applications for employees hired in 2015 and early 2016.  This relief was necessary because of Congress’ long delay in reauthorizing the WOTC program after it expired on December 31, 2014.

Congress passed legislation on December 18, 2015 to reauthorize WOTC for 5 years, including retroactively 1 year to cover 2015.

Under the regular rules, employers face a 28-day deadline to submit a WOTC application for an employee who qualified at their time of hire. Transition Relief, as currently offered by the IRS, extends the application deadline to June 29, 2016 for all eligible employees hired from January 1, 2015 through May 31, 2016.  The WOTC Coalition is asking the Treasury Department to extend the June 29 deadline by another 90 days.

Why? WOTC employers still face a major problem.  The Department of Labor has not yet issued the revised application forms and the official guidance employers need in order to comply with the newest provision of the WOTC tax code.

State workforce agencies that receive the applications and issue certificates for qualifying employers also face challenges. Until the new forms and guidance are issued, they can not update the software systems and online webforms that support the application and certification process.  Agencies in many states are asking employers to delay submitting their applications until the updates and revisions can be made.

Even if the Department of Labor issued the anticipated forms and guidance today, many state workforce agencies would be hard pressed to complete their internal system updates in time for employers to submit all their WOTC applications before the June 29 deadline.


WOTC Transition Relief and Forms Update – Almost There

Paul Suplizio, President of the Work Opportunity Tax Credit Coalition, announced this morning that the IRS has released Notice 2016-22 providing for WOTC Transition Relief. I believe Paul but so far, I am unable to find the documents online.  Perhaps they’ll show up later today.

As soon as the nitty-gritty details come to light, you’ll be the first to know.

We Should All Do More

Dear friends and associates.

Many of us have been involved with the Work Opportunity Tax Credit (WOTC) for years, even decades. We are experts. We’ve seen it succeed while noting its shortcomings and its gradual refinement over time.

Others among us were only recently introduced to WOTC. As we gain a more clear understanding of its benefits, we regret not becoming informed sooner.

Some of us are employers who benefit directly from WOTC, inviting veterans and other qualifying people to join our workforces.

Many of us are accountants and professionals who help those employers. Without us, our employer friends could not effectively manage the WOTC program nor properly claim its tax benefits.

One thing we all have in common, however, is that we are in business and WOTC affects our bottom lines. Each time the section of the US tax code providing for WOTC expires, it creates uncertainty that hurts us and our clients.

I know that this uncertainty is what brings many of you back to The WOTC Planet on a regular basis. You are looking for news, reassurance, and maybe even a game plan. You want to know how you can help affect a successful outcome in Congress.

The WOTC Coalition is a central player winning support for the WOTC program in Congress and the White House. Readers of The WOTC Planet profit from frequent updates by the WOTC Coalition’s President, Paul Suplizio. (Paul has given permission for The WOTC Planet to publish his progress reports.)

The effectiveness of the WOTC Coalition depends on financial contributions from its members and from other highly-interested parties like you and me. I have personally given it some thought and decided it’s in my interest to contribute whatever I can. If the coalition were to fail in its mission and we lost the WOTC program, many of my clients would also suffer.

I’m sending a check today. Will you please join me by making a financial contribution?

Send our checks to:
Work Opportunity Tax Credit Coalition
5920 Munson Court
Falls Church VA 22041

If your organization is interested in joining the WOTC Coalition as member, visit the membership page at: Join the WOTC Coalition

How much should you contribute? That’s up to you. Membership dues for a small business begin at about $200 per month.  Larger members pay more. But even a non-member contribution of $200 per year coming from each interested reader of The WOTC Planet would be very beneficial.

Our financial contributions will help the coalition mobilize representatives in all 50 states. The immediate goal is to win a temporary extension from Congress. Given the current volatility of Washington’s political landscape, it’s imperative that we support the coalition’s effort to renew and to ultimately make the WOTC program a permanent part of the tax code.