US Tax Relief for certain employers claiming the Work Opportunity Tax Credit
The U.S. Treasury is providing transition relief to employers claiming the Work Opportunity Tax Credit which is a federal income tax credit available to employers that hire members of groups specified in the Internal Revenue Code facing significant barriers to employment.
The Treasury extends the 28-day deadline for employers to submit a request where an employee must have a principal place of residence within an Empowerment Zone where the employee continuously resides.
Empowerment Zone designations terminated on Dec. 31, 2020, but the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted as Division EE of the Consolidated Appropriations Act, 2021, permitted the designations to be extended through 2025. On May 26, 2021, all Empowerment Zone designations were extended from Dec. 31, 2020 to Dec. 31, 2025. The transition relief under this notice allows employers to submit Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit) for these employees until Nov. 8, 2021.