The Internal Revenue Service warned employers that they only have until June 19 to qualify for an expanded tax credit of up to $9,600 for hiring veterans.

Employers that hired unemployed veterans during late 2011 and early 2012 had an expanded period to request the required certification for claiming the expanded Work Opportunity Tax Credit, the IRS said Tuesday. The expanded period ends next Tuesday.

The IRS is reminding employers that for eligible veterans hired on or after Nov. 22, 2011 and before May 22, 2012, they have until June 19 to file certification forms with state workforce agencies.

The new rules provide for an expanded WOTC to employers that hire eligible unemployed veterans. The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 per veteran for tax-exempt organizations. The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hiring, the hours the veteran works and the amount of first-year wages paid.

Employers who hire veterans with service-related disabilities may be eligible for the maximum credit.

Normally, an eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency within 28 days after an eligible worker starts work. But under a special rule employers have until June 19, 2012, to file this form for veterans hired on or after Nov. 22, 2011, and before May 22, 2012.

The 28-day rule for timely filing applies for eligible veterans hired on or after May 22, 2012, and before Jan. 1, 2013. Form 8850 can be faxed or electronically transmitted to the state workforce agency, as long as the agency is able to receive the certification forms that way.

For-profit employers are able to claim the credit on their income tax returns by using Form 5884, Work Opportunity Credit, and Form 3800, General Business Credit. Tax-exempt organizations need to follow a separate claim procedure using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans.

More details about the expanded WOTC and the forms are available on IRS.gov.

Phishing Scam
Separately, the IRS is also warning of a new e-mail-based phishing scam targeting veterans, members of the military and their spouses. The email purports to come from the Defense Finance and Accounting Services, includes a .mil email address, and tells those who receive disability benefits from the Department of Veterans Affairs that they may be able to claim additional funds from the IRS.

The email recipients are asked to send IRS and VA forms containing personal information to an address in Florida. Identity thieves then use the information sent to them.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access