Source: http://www.cmswotc.com/irs-joint-directive-on-the-work-opportunity-tax-credit-per-internal-revenue-code-section-51-irc-%C2%A7-51/
Timestamp: 2020-02-24 02:24:25
Document Index: 798553693

Matched Legal Cases: ['§ 51', '§ 51', '§ 51', '§ 51', '§ 280', '§ 1396', '§ 45', '§ 41', '§ 6001', '§ 51']

IRS Joint Directive on the Work Opportunity Tax Credit per Internal Revenue Code Section 51 (IRC § 51) - Cost Management Services Work Opportunity Tax Credits Experts
IRS Joint Directive on the Work Opportunity Tax Credit per Internal Revenue Code Section 51 (IRC § 51)
Posted on October 23, 2019 October 23, 2019 by WOTC Blog
A Joint Directive, released by the IRS this week, provides instructions to Large Businesses and International (LB&I) and Small Business and Self Employed (SB/SE) examiners on the treatment of Work Opportunity Tax Credit (WOTC) examinations under IRC § 51. Specifically, this Joint Directive is effective for all LB&I and SB/SE taxpayers claiming the WOTC in the year their eligible employees are certified.
To use resources effectively and to reduce administrative burden, examiners shall not challenge the timing of when a taxpayer claims the WOTC, if the claimed WOTC certification complies with all requirements of IRC § 51, but the WOTC is claimed in the year the taxpayer receives the delayed certification (Certification Year). To comply with IRC § 280C, taxpayers claiming the WOTC under this Directive must not claim or have claimed a deduction for wages, equal to the WOTC.
If an examiner audits the WOTC, the examiner should first determine the taxpayer’s WOTC computation methodology. If the taxpayer consistently claims the WOTC in the Certification Year, then the examiner should follow this Directive and allow the taxpayer to claim the WOTC in the Certification Year. The taxpayer should be allowed an initial transition year to convert from its previous computation methodology to claiming the WOTC in the Certification Year.
The examiner may verify a taxpayer’s WOTC computation by confirming the amount and year qualified wages were paid, the year certifications were received, and that the taxpayer did not include the same qualified wages to compute other credits (e.g., Empowerment Zone (IRC § 1396(c)(3)), Indian Employment (IRC § 45A(b)(1)(B)), Research Credit (IRC § 41(b)(2)(D)(iii)), etc.). Under IRC § 6001, the taxpayer should make available to the examiner, upon request, all relevant documentation to substantiate the WOTC.
Read: LB&I and SB/SE Joint Directive on the Work Opportunity Tax Credit per Internal Revenue Code Section 51 (IRC § 51) (IRS Website)
In our 20+ years of performing WOTC Screening and Administration we’ve saved millions for our customers.
This entry was posted in IRS Guidance and tagged IRS Guidance, Work Opportunity Tax Credit, WOTC. Bookmark the permalink.
← WOTC Questions: What’s the tax credit for new hires in Florida?
The Work Opportunity Tax Credit (WOTC) in Alabama →