Training and Employment Guidance Letter (TEGL) No. 25-15

Protecting Americans from Tax Hikes (PATH) Act

• TEGL No. 25-15 retroactively reauthorized the following Work Opportunity Tax Credit (WOTC) Program Target Groups for a five-year period beginning on January 01, 2015 and ending on December 31, 2019:                                                                                                                                        
• TEGL No. 25-15 provided an extension of the Empowerment Zones for a two-year period beginning on January 1, 2015 and ending on December 31, 2016.                                                                                                                                                                                                                                         
• TEGL No. 25-15 introduced the new target group, Qualified Long-term Unemployment Recipient, for new hires that begin to work for an employer on or after January 01, 2016 and through on December 31, 2019.

IRS Form 8850

Block # 7 – Check here if you are in a period of unemployment that is at least 27 consecutive weeks and

for all or part of that period you received unemployment compensation.

ETA Form 9061

Block # 23 – Are you an individual who is or was in a period of unemployment that is at least 27 consecutive weeks the day before you began to work for the employer, or if earlier, the day

you completed IRS Form 8850, the Prescreening Form?     Yes__ No__

If YES, did you receive unemployment compensation/benefits under State or Federal law during a period of unemployment?     Yes__ No__

Acceptable Supporting Documentation for Long-term Unemployment Recipient per ETA Form 9061 – QUESTION 23

• TEGL No. 25-15 detailed Transition Relief from the 28-day timely filing requirement for the NEW Long-term Unemployment Recipient by providing additional time to file the IRS Form 8850, with the Kentucky WOTC Unit for the target group Long-term Unemployment Recipient if:

o    The new hire meets Department of Labor for new Target Group – Long-term Unemployment Recipient  

o    The new hire began or begins work for that employer on or after January 1, 2016, and on or before August 31, 2016

o    If the employer successfully submits the completed IRS Form 8850 to the Kentucky WOTC Unit no later than September 29, 2016, that WOTC request will be considered to have satisfied the timely filing requirements of § 51(d)(13)(A)(ii) of the Code.  Note: WOTC requests submitted on or after 09/30/2016 are not eligible for Transitional Relief).

• TEGL No. 25-15  detailed Transition Relief from the 28-day timely filing requirement for the Hiatus Target Groups by providing additional time to file the IRS Form 8850, with the Kentucky WOTC Unit for target groups (listed below) if:

o    The new hire meets all the Department of Labor criteria for one for authorized targeted groups

          1.     Qualified IV-A (TANF) Recipient

          2.     Qualified Veteran (2Ba, 2Bb, 2Bc, 2Bd and 2Be)

          3.     Qualified Ex-felon

          4.     Qualified Designated Community Resident

          5.     Qualified Vocational Rehabilitation Referral

          6.     Qualified Summer Youth Employee

          7.     Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient

          8.     Qualified Supplemental Security Income (SSI) Recipient

          9.     Qualified Long-term Family Assistance (TANF) Recipient (LTFAR)

o    The new hire began or begins work for that employer on or after January 1, 2015, and on or before August 31, 2016

o    If the employer successfully submits the completed IRS Form 8850 to the Kentucky WOTC Unit no later than September 29, 2016, that WOTC request will be considered to have satisfied the timely filing requirements of § 51(d)(13)(A)(ii) of the Code.  Note: WOTC requests submitted on or after 09/30/2016 are not eligible for Transitional Relief.