Protecting Americans from Tax Hikes (PATH) Act
Guidance for Work Opportunity Tax Credit
2015 Reauthorization
Purpose:
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Retroactively reauthorizes the following WOTC Program target Groups for a five-year period from 01/01/2015 to 12/31/2019:
Target Group A
Qualified IV-A (TANF) Recipient
Target Group B
Qualified Veteran
Target Group C
Qualified Ex-felon
Target Group D
Designated Community Resident - Rural Renewal Counties
Target Group E
Vocational Rehabilitation Referral
Target Group F
Qualified Summer Youth Employee
Target Group G
Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient
Target Group H
Qualified Supplemental Security Income (SSI) Recipient
Target Group I
Long-term Family Assistance (TANF) Recipient (LTFAR)
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Introduces a new target group, Qualified Long-term Unemployment Recipients, for new hires that begin to work for an employer on or after 01/01/2016 through 1231/2016.
Target Group L
Long-term Unemployment Recipient (LTUR).
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Provides for an extension of the Empowerment Zones for a two-year period, from December 31, 2014 to December 31, 2016
Section 9 of TEGL 25-15
Transition Relief for Employer Submission of Form 8850. Section IV.A., page 4, of IRS Notice 2016-22, and IRS Notice 2016-40 available at: https://www.irs.gov/forms-pubs, provide employers, including qualified tax-exempt organizations, with transition relief from the 28-day timely filing requirement by providing additional time to file the pre-screening notice, IRS Form 8850, with SWAs.
a. Additional time for employers that hired or hire members of targeted groups (other than qualified long-term unemployment recipients) between January 1, 2015 and August 31, 2016. An employer that hired or hires a member of a targeted group (described in § 51(d)(1)(A) through (d)(1)(I) of the Code) who began or begins work for that employer on or after January 1, 2015, and on or before August 31, 2016, will be considered to have satisfied the requirements of § 51(d)(13)(A)(ii) of the Code if the employer submits the completed IRS Form 8850 to the SWA to request certification no later than September 29, 2016.
b. Additional time for employers that hired or hire long-term unemployment recipients between January 1, 2016 and August 31, 2016. An employer that hired or hires an individual who is a long-term unemployment recipient (described in § 51(d)(1)(J) of the Code) and who began or begins work for that employer on or after January 1, 2016, and on or before August 31, 2016, will be considered to have satisfied the requirements of § 51(d)(13)(A)(ii) of the Code if the employer submits the completed IRS Form 8850 to the SWA to request certification no later than September 29, 2016.
c. Application of 28-day requirement to individuals hired on or after September 1, 2016. An employer that hires a member of a targeted group (described in § 51(d)(1)(A)