Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has clarified its previous guidance (TAXDAY, 2009/05/29, I.3) regarding unemployed veterans and disconnected youth for purposes of the work opportunity tax credit (WOTC). First, an individual who received a high school diploma or GED certificate at least six months prior to the hiring date and who otherwise satisfies the requirements for a disconnected youth will not fail to qualify as a disconnected youth merely because the individual has been employed at times since graduation, as long as that employment was no more than occasional. Second, transition relief is extended for submitting certification requests.

  Generally, a worker cannot be treated as a member of a targeted group unless the employer obtains certification from a designated local agency on or before the day the individual begins work that the individual is a member of a targeted group, or completes a prescreening notice (Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit) on or before the day the individual is offered employment and submits that notice to the designated local agency to request certification not later than 28 days after the individual begins work. Under the extended transition relief, any employer who hires an unemployed veteran or disconnected youth after December 31, 2008, and before September 17, 2009, will be considered to satisfy the deadline if the employer submits the pre-screening notice to the designated local agency to request certification not later than October 17, 2009. Notice 2009-28, I.R.B. 2009-24, 1082, is clarified.

Notice 2009-69, 2009FED ¶46,443

Other References:

 
Code Sec. 51

  CCH Reference - 2009FED ¶4803.03

  CCH Reference - 2009FED ¶4803.04

  CCH Reference - 2009FED ¶4803.64

  CCH Reference - 2009FED ¶4803.65

  Tax Research Consultant

  CCH Reference - TRC BUSEXP: 54,258.60
CCH Reference - TRC BUSEXP: 54,262.02