IRS Formally Announces 2014 Application Extension Period

Yesterday  the IRS released notification 2015-13 that it was extending the time employers who want to claim the work opportunity tax credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit (Notice 2015-13 PDF) for any employees hired after January 1, 2014.

Form 8850 is normally due within 28 days of an employee’s start date. The retroactive extension of the WOTC credit had raised questions about how employers who hired eligible employees in 2014 would be able to timely file the form and certify those employees.

Under the extension, employers who hire a member of a targeted group on or after Jan. 1, 2014, through January 1, 2015 will be considered to have timely filed Form 8850 if it is received by the designated local agency by April 30, 2015.

WOTC Solutions has successfully filed employer applications during an IRS extension period before and we are ready to assist you again. Please email or call 888-313-5696 with any immediate questions and let's start screening your employees and saving you money today!

WOTC fees are also tax deductible!

Many clients have asked recently about deducting WOTC preparation fees as a business expense. The answer is, "Yes!" So not only are you lowering your bottom line tax liability, the service fees for your WOTC Consultant are tax-deductible! We wanted to make sure that we had our facts straight as we educate our clients. According to the IRS, business expenses are defined as "the cost of carrying on business". These expenses are usually deductible if the business is operated to make a profit.

What Can I Deduct?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
It is important to separate business expenses from the following expenses:
The expenses used to figure the cost of goods sold, Capital Expenses, and Personal Expenses.

Please feel free to contact us with any questions about how to claim your WOTC credit(s) after a certification has been issued. April will be here, before you know it!

Happy Holidays!

May you and yours be safe and well,

WOTC Solutions

President Signs WOTC Into Law

The latest from the WOTC Coalition President, Paul Suplizio.

"The President signed H.R. 5771, the Tax Increase Prevention Act, into law Friday, December 19. The bill extends current WOTC law, VOW To Hire Heroes Act veterans credits, Empowerment Zones, Indian Employment Tax Credit, and fifty other tax extenders retroactive to January 1, 2014.

The bill also enacts for the first time the ABLE Act authorizing tax-advantaged savings accounts for people with disabilities and their families."

We will continue to work diligently with the Coalition to see the law made permanent.

Happy Holidays!

Senate passes tax extenders

The Senate passed H.R. 5771 last night with a vote of 76-16. WOTC is retroactive to January 1, 2014 and applies to employees who commence work for the employer through December 31, 2014.

It is important to make sure that you have completed and submitted applications for any employees hired this year as soon as possible. The law is to be applied retroactively to 2014 so any applications that were received timely this year should be in the front of the line.

WOTC Solutions will do everything we can to expedite your 2014 applications! Contact us with any further questions regarding your applications.

House Votes to Renew "Tax Extenders"

The House voted overwhelmingly on Wednesday to renew more than 50 expired tax breaks, including the Work Opportunity Tax Credit, for individuals and businesses through the end of this year, with the Senate looking increasingly likely to follow suit.

Lawmakers have been under pressure to take action before the end of this year so that taxpayers can claim the breaks on their 2014 tax returns.

We are communicating with WOTC Offices across the nation to learn how best to help them expedite pending 2014 applications the moment the law is reinstated. 

WOTC Renewal Remains Our Priority

As Congress reconvenes tomorrow they walk in the door to over 50 expired tax provisions that could postpone the start of the tax season. The business community remains unsettled not knowing how to prepare for the end of the financial year. We were advised to wait until the election was complete to bring such issues to our Congresspeople and we have done just that. But, it's time to tell Congress what we need and what we expect.

"Our goal is to get WOTC enacted in the EXPIRE bill early-on in the lame duck session so as not to be drawn into talks on the budget and the rest. We have grounds to press this because a delay to December will undoubtedly impact and delay the IRS tax filing season. 

We have the White House supporting WOTC and other extenders in the EXPIRE bill. We have Senate Majority Leader Reid and Republican Leader McConnell as long-time supporters of the extenders who voted for the EXPIRE bill."

-Paul Suplizio, WOTC Coalition

WOTC Solutions, along with the WOTC Coalition is pressing upon members of Congress the urgency of passing the tax extenders. We continue to represent our peers and clients in order to be heard. If you would like to speak to your representative directly on this issue, please get in touch and we can point you in the right direction.