Extended Due Date to Claim Work Opportunity Tax Credit (WOTC)

Posted by Kim Chen on July 29th, 2016

The WOTC allows employers who hire members of targeted groups to claim a credit against income tax of a percentage of first-year wages. The credit was retroactively extended through 12/31/19 by the PATH Act of 2015. In a Notice, the IRS announced additional transitional relief for eligible employers to claim the WOTC, beyond the time period provided in Notice 2016-22. Employers now have three extra months (until 9/28/16) to file the necessary forms to claim the credit for eligible workers who begin work for the employer on or before 8/31/16. Notice 2016-40, 2016-27 IRB.