Wednesday, February 22, 2012

New IRS Instructions for Expanded Veterans Tax Credits

The IRS has released updated instructions for employers desiring to claim one of the new veteran tax credits, Returning Heroes or Wounded Warrior. Before employers had 28 days from the day the veteran begins work to file Form 8850 with the state workforce agency; however, the IRS has released new guidance that employers have until June 19, 2012, to complete and file the newly revised form for veterans hired on or after November 22, 2011, and before May 22, 2012. The 28-day rule goes back into effect for eligible veterans hired on or after May 22, 2012.

Additionally, employers can now submit the form electronically or by fax, subject to the ability of the state workforce agencies to accept submissions in those formats. Businesses claim these credits on their income tax returns. The credit is first figured on Form 5884 and then becomes a part of the general business credit claimed on Form 3800. This credit is also available to certain tax-exempt organizations who file Form 5884-c.

PLEASE NOTE: Hire a Hero, Hire a Vet, its affiliates and its employees are not in the business of providing tax or legal advice to any taxpayer. This content is for general information purposes only, and is not intended or written to be used without the advice of the taxpayer’s independent tax advisor.

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