Find out the Who's, What's and How's of your Windfall Tax Credit!
On March 9th of 2013, the IRS made a ruling that creates a windfall tax credit for SBAC members, small and large. The items below outline what you need to know, WHAT the credit is, the HOW to do it, by WHEN, WHO this applies to and HOW MUCH it is.:
1. WHAT- IRS Notice 2013-14 of 3-9-13 grants businesses a never-before-seen extension of filing Work Opportunity Tax Credit (WOTC). The greatest benefit will be available to businesses who were NOT doing WOTC in 2012 and Q1 2013. It allows them to submit WOTC forms (for certification) going all the way back to hires of 1-1-12 and forward. (Ref. http://www.irs.gov/pub/irs-drop/n-13-14.pdf)
2. HOW MUCH- An average business that hires 100 people per year should generate $6,000 in tax credits
3. WHO THIS APPLIES TO- Primarily businesses who were not doing WOTC in 2012
4. HOW- The enabling first steps for a company to have R. Jeffrey & Associates (RJA) help with the WOTC processing are:
a. Complete and fax/email back a Register Now Form (attached). This enables RJA to prepopulate the WOTC forms, and email to clients to enable printing of sufficient quantities of forms
b. Complete (complete Section #1 and #7), and mail back a Power of Attorney (attached)
5. HOW- Companies that have any employees that started 1/1/12 or later, complete IRS Form 8850 and D.O.L. Form 9061
6. HOW- The forms would be mailed to RJA. RJA reviews each form, selects those that merit sending to the state for certification and tracks their status; ultimately calculating the appropriate credit.
7. BY WHEN- The last day the IRS allows these older WOTC forms to be mailed to the WOTC office is April 29, 2013. We are requesting all forms are mailed to RJA by 4/12/13 allowing us to complete our processing and mail the forms to the state.