In Notice 2009-89, dated October 8, the IRS reminded taxpayers of an extension of the deadline for certification requests under the recently expanded “Work Opportunity Tax Credit” to October 17. This tax credit is available for businesses hiring eligible unemployed veterans and disconnected youth (Note: The definition of “disconnected youth” has also been clarified).

Enacted in February, the American Recovery and Reinvestment Act (ARRA) added unemployed veterans returning to civilian life and certain younger workers (“disconnected youth”) to the list of groups covered under the tax credit.

Employers normally must file the “Pre-Screening Notice and Certification Request for the Work Opportunity Credit “ IRS Form 8850 with their state workforce agency within 28 days from hiree’s starting date, but the IRS established a special rule to allow the certification request to be filed by October 17 for any eligible veterans and disconnected youth hired between January 1 and September 17. Additional details can be found in the Form 8850 Instructions and on the IRS website.

Bookmark this page