SKR+Co Alert: IRS waives late-payment penalty, Work Opportunity Credit extended, & more!

March 21, 2013

Late-payment penalties for taxpayers affected by delayed forms may be waived by the IRS

Many taxpayers have to file extensions this year because the IRS was not ready to accept certain forms at the beginning of tax season. Therefore, the IRS announced yesterday that it is waiving the late-payment penalty for taxpayers filing one of the 31 delayed forms and who make a good-faith effort to estimate and pay their tax when they file for an extension. The waiver is not automatic, however.

See the full article here.

The IRS extended the filing deadline for the work opportunity tax credit

The IRS announced that it was extending the time employers claiming the work opportunity tax credit (WOTC) have to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit.

Form 8850 is usually due no later than 28 days after the employee starts work. Under this extension, employers who hires a member of a "targeted group", other than a qualified veteran, between Jan. 1, 2012 and Mar.31, 2013 now have until April 29, 2013 to file the form. Employers who hire a qualified veteran on or after Jan. 1, 2013 through Mar. 31, 2013 also have until April 29, 2013 to file Form 8850.

For more information on the criteria for claiming  the WOTC, please click here or talk with your tax accountant.

Read IRS Notice 2013-14 Here

Employee vs. Independent Contractor

IRS expands Voluntary Classification Settlement Program (VCSP)

The question of how workers are classified – employee or independent contractor – is of increasing interest to the IRS, and they have recently expanded the relief program for employers with misclassiffied workers.

To see if and how this may apply to you, read the full article here.

Please let us know if you have any questions about these articles or if we can be of assistance in any other way. You can contact us at (719) 630-1186 or through our Secure Email.