Instructions For Form 8850 - Internal Revenue Service printable pdf download

Department of the Treasury

Instructions for Form 8850

Internal Revenue Service

(Rev. February 2007)

Pre-Screening Notice and Certification Request for the Work Opportunity Credit

areas). The employer is not required to ask employees to

General Instructions

furnish any documentary evidence.

Section references are to the Internal Revenue Code

unless otherwise noted.

Who Should Complete and Sign the

What’s New

Form

The Tax Relief and Health Care Act of 2006 extended the

The job applicant gives information to the employer on or

work opportunity and welfare-to-work credits to cover

before the day a job offer is made. This information is

individuals who begin work for the employer before

entered on Form 8850. Based on the applicant’s

January 1, 2008. In addition, for individuals who begin

information, the employer determines whether or not he

work for the employer after December 31, 2006, the Act

or she believes the applicant is a member of a targeted

provides that the welfare-to-work credit will be combined

group (as defined under Members of Targeted Groups). If

with the work opportunity credit. To carry out these

the employer believes the applicant is a member of a

changes, section 51 was amended, and section 51A was

targeted group, the employer completes the rest of the

repealed.

form no later than the day the job offer is made. Both the

job applicant and the employer must sign Form 8850 no

The Form 8850 that you are required to file with the

later than the date for submitting the form to the SWA.

work opportunity tax credit (WOTC) coordinator for your

state workforce agency (SWA) is now due no later than

the 28th day after the job applicant begins work for you.

Instructions for Employer

For employees who begin work after December 31,

2006, the following changes pertaining to targeted group

members apply.

When and Where To File

•

Ex-felons are no longer required to be a member of a

Do not file Form 8850 with the Internal Revenue Service.

low-income family.

•

Instead, if required, file it with your SWA no later than the

Food stamp recipients must be at least age 18 when

28th day after the job applicant begins work for you.

hired, but not age 40 or older.

Although electronic filing of Form 8850 is permitted, at

Note. The February 2007 revision of Form 8850 and its

the time these instructions were published, Colorado was

instructions makes minor updates to the January 2007

the only state equipped to receive Form 8850

revisions. Employers may continue to use the January

electronically. See Announcement 2002-44 for details.

2007 revision of Form 8850.

You can find Announcement 2002-44 on page 809 of

Internal Revenue Bulletin 2002-17 at

Purpose of Form

Employers use Form 8850 to pre-screen and to make a

To get the name, address, phone and fax numbers,

written request to a SWA (unless the employee checks

and email address of the WOTC coordinator for your

only the Hurricane Katrina employee box) to certify an

state, visit the Department of Labor Employment and

individual as a member of a targeted group for purposes

Training Administration (ETA) website at

of qualifying for the work opportunity credit.

Submitting Form 8850 to the SWA (unless the

Never include Form 8850 with a tax return or

employee checks only the Hurricane Katrina employee

otherwise send it to the IRS, regardless of the

box) is but one step in the process of qualifying for the

employee’s targeted group. Form 8850 should be

work opportunity credit. The state WOTC coordinator for

CAUTION

filed with the SWA unless the employee checks only the

the SWA must certify the job applicant is a member of a

Hurricane Katrina employee box, in which case the

targeted group. After starting work, the employee must

employer should keep the Form 8850 for its records.

meet the minimum number-of-hours-worked requirement

for the work opportunity credit. The employer elects to

take the credit by filing Form 5884, Work Opportunity

Additional Requirements for

Credit.

Certification

The certification requirements described above do

In addition to filing Form 8850, you must complete and

not apply to Hurricane Katrina employees. For an

send to your state WOTC coordinator either:

employer of a Hurricane Katrina employee, this

CAUTION

•

ETA Form 9062, Conditional Certification Form, if the

form is used to accept reasonable evidence that the

job applicant received this form from a participating

worker is a Hurricane Katrina employee. It is the

agency (e.g., the Jobs Corps) or

employer’s responsibility to ascertain that the place

•

ETA Form 9061, Individual Characteristics Form, if the

where the employee lived on August 28, 2005, (the

job applicant did not receive a conditional certification.

address on line 1 of the form) is in fact in the core

disaster area (see pages 2 and 3 for a list of these

Cat. No. 24833J

Instructions For Form 8850 - Internal Revenue Service

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