The WOTC was extended through December 31, 2014, by the Tax Increase Prevention Act of 2014. This credit is applicable to taxable employers hiring workers within targeted groups—including certain qualified veterans—and can be claimed as a general business credit against their income tax.
Before employers can claim the credit, they must obtain certification from a “designated local agency” (DLA) that the hired individual is a targeted group member. The employer must typically submit Form 8850: Pre-Screening Notice and Certification Request for the Work Opportunity Credit to the DLA no later than the 28th day after the individual begins work. However, this retroactive extension meant that the 28-day period had already expired for many of the covered employees hired in 2014. Therefore, the IRS has extended the deadline until April 30, 2015, for employers to request certification from their DLAs.
Please note: A timely request for certification doesn’t eliminate the need for an employer to receive the certification before claiming the credit, so impacted employers may need to file a tax return extension.