As most of you are probably already aware, the WOTC program was in hiatus from January until mid-December 2014. Therefore, the WOTC certifications are backlogged and many states are anticipating delays past April 15th. Some areas could see backlogs as late as August.

Given the circumstances, most of you will have a couple options to make the most of your pending certifications.

File your taxes on time and claim a portion of the credits.

Consider filing an extension in order to claim all of your 2014 certificates as a tax credit on 2014 taxes.

We would be happy to answer any questions to help you and your accountant make an informed decision. As always, you may reach us via email or by calling 563-583-2115.

November 2, 2014

Tax Extension Filing

As you may be aware, there are several tax programs awaiting congressional renewal. It isn’t uncommon for tax credit programs to lapse, particularly the Work Opportunity Tax Credit. However, currently, the IRS and lobbyists are urging lawmakers to vote on tax bills by the end of November to expedite the process. In the meantime, we suggest that customers file for extensions due to a potential backlog of approved credits, not just through WOTC but other pending bills as well.

Congressional leaders vote on factors aside from just renewing incentives. A few determinants include budget proposals, the length of time to extend incentives and whether to do so permanently or temporarily. Sometimes, leaders may re-write provisions to accommodate these fluctuations. With its’ size, WOTC lapses aren’t unheard of. Throughout its history, the tax incentive has been in hiatus several times since established in 1996.

The IRS has urged lawmakers to vote on tax bills to expedite the process. In the meantime, we suggest that customers file for extensions due to a potential backlog of approved credits, not just through our program but other pending bills as well.

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WOTC Update for 2014 Taxes

Tax Extension Filing