WOTC

Work Opportunity Tax Credit (WOTC) (April 5, 2000)

Reauthorization of Work Opportunity Tax Credit (WOTC) (March 21, 2000)

SERVICE FEE MEMORANDUM

MS-99-00-23

RE: Work Opportunity Tax Credit (WOTC)

IRS 8850 Request for Certification Form

DATE: April 5, 2000

Greg Kring, Department of Employment Services (DES) Field Support Branch Manager, has informed me that several instances have recently occurred in which employers, who had hired DVR customers who were eligible for the Work Opportunity Tax Credit (WOTC), failed to submit the IRS 8850 Request for Certification form within twenty-one (21) days of the start-to-work date. By law, DES must deny certification when the IRS 8850 is not submitted in a timely manner. Furthermore, the forms sent to DES must contain original signatures; faxed copies are not acceptable.

When you issue the Conditional Certification forms to employers, i.e., the IRS 8850 Request of Certification and the ETA 9062 Individual Characteristics Form, please stress that the forms with original signatures must be mailed to DES within 21 days of the start-to-work date. If this requirement is not met, the employer will miss out on a potential tax savings of $2,400 per eligible employee.

Continue to distribute copies of the documentation letter by Commissioner Sam Serraglio to employers. This letter also stresses that only forms with original signatures shall be accepted by DES and that forms must be mailed to DES within 21 days of the employee’s first day of work. Employers are to mail forms to Barbara Gilley, WOTC Coordinator, Department for Employment Services, Division of Field Services, 275 East Main Street, 2W, Frankfort, KY 40621.

Questions in this regard should be addressed to Barbara Gilley or to Greg Kring by E-Mail or Phone at 502-564-7456.

SERVICE FEE MEMORANDUM

MS-99-00-21

DATE: March 21, 2000

RE: Reauthorization of Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) has been reauthorized and extended through December 31, 2001. This notice was contained in a January 12, 2000, news release that was E-Mailed to all WFD users.

Only one change in the program has been reported to me. Under no circumstance can an employer claim the credit on a former employee who has been rehired.

You may continue to use the same forms and procedures that were being used when the program expired on June 30, 1999.

Questions in this regard may be directed to Barbara Gilley, State WOTC Coordinator, or to Greg Kring via E-Mail or phone (502-564-7456).