News and Insights

IRS Notice Allows Employers Extension to Take Advantage of Work Opportunity Tax Credit

Tax Development Mar 10, 2016

In December 2015, President Obama signed the PATH Act extending the Work Opportunity Tax Credit (WOTC) through 2019. Since the PATH Act retroactively extended the WOTC for 2015, the Internal Revenue Service (IRS) recognized that employers need additional time beyond the statutory 28 days to file their WOTC applications.

The IRS announced in Notice 2016-22 that employers participating in, or planning to participate in, the WOTC program shall be granted an extension to file the Form 8850Pre-Screening Notice and Certification Request for the Work Opportunity Credit. Under the extension, employers who hired employees between January 1, 2015 and May 31, 2016, will be considered to have filed Form 8850 on time for the employee, if it is filed no later than June 29, 2016.


Allea Newbold