IRS Seeks Comments on Unchanged Hiring Tax Credit Form
Published Date: 2/26/2025
Notice
Summary
The IRS wants your thoughts on Form 8850, which businesses use to get a tax credit for hiring certain workers. There are no changes to the form, but the IRS is asking for comments by April 28, 2025. This affects businesses and involves a big paperwork effort, with about 440,000 responses expected each year.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Form 8850: Large paperwork time
If you are a business using Form 8850 to request the Work Opportunity Credit, the IRS estimates each response takes about 7 hours and 24 minutes. The IRS expects about 440,000 responses per year, for an estimated 3,242,800 total annual burden hours.
WOTC applies to hires after 2020
If you are an employer seeking the Work Opportunity Tax Credit, Form 8850 is used as part of a written request to a state agency to certify employees who begin work after December 31, 2020. Employers must use this form to request certification that an employee is a member of a targeted group for the credit.
Opportunity to comment by April 28, 2025
The IRS is asking the public—especially businesses—to submit written comments on Form 8850 and its paperwork burden by April 28, 2025. The agency specifically invites comments on burden estimates, ways to reduce respondent burden (including automated collection), and estimates of costs to provide the information.
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