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The Internal Revenue Service will allow businesses hiring qualified veterans additional time, beyond the 28-day deadline, to submit forms for certification to claim veteran tax credits, according to a notice from the agency released Feb. 9.
Employers that hire qualified veterans on or after Nov. 22, 2011, and before May 22 will satisfy requirements for the Returning Heroes and Wounded Warriors Work Opportunity Tax Credits if the certification forms are submitted no later than June 19, IRS said in Notice 2012-13.
Typically, employers must submit the certification form, Form 8850, to the designated local agencies no later than 28 days after the individual begins working.
The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations, according to a statement (IR-2012-17) on the notice from IRS.
The tax credits were enacted as a part of the VOW to Hire Heroes Act (Pub. L. No. 112-056) that was originally part of President Obama's jobs package (62 BTM 371, 11/22/11).
The notice details guidance on electronic signatures and submission of the form. The form allows employers to get certification that an individual is a targeted group member so they can claim the credit. IRS will allow the form and signature to be sent to the designated local agencies via facsimile if the agency accepts those submissions, the notice said.
The law extended the credit to qualified veterans who begin work for the employer on or before Dec. 31, 2012. The tax credits are not available for wages to individuals who begin work after Dec. 31, 2011, other than qualified veterans, the notice said.
Qualified tax exempt organizations also can claim the credit, IRS said. The law allows qualified tax exempt organizations that hire qualified veterans on or after Nov. 22, 2011, to claim the credit against the employer share of Social Security tax.
The organizations must use Form 5884-C to claim the credit. The form should be filed separately and not attached to other returns. The form should be filed after the organization has filed its employment tax returns for the time period in which the credit is claimed.
Text of IRS Notice 2012-13 is available at http://op.bna.com/dlrcases.nsf/r?Open=mcan-8rd2wk. Text of the IRS statement (IR-2012-17) about the notice is available at http://www.irs.gov/newsroom/article/0,,id=254095,00.html.
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