IRS Form 8850 Pre-Screening Notice and Certification Request is required to claim the Work Opportunity Tax Credit (WOTC). This federal incentive program rewards employers for hiring individuals from targeted groups who face significant barriers to employment.
Filing Form 8850 late risks losing thousands of dollars in tax credits per employee. State Workforce Agencies (SWAs) are instructed to discard any Forms not submitted within 28 calendar days after the employee begins work. Missing the deadline disqualifies the employer from claiming the WOTC for the hire.
Form 8850 28-Day Deadline
The IRS requires Form 8850 to be signed on or before the day a job offer is made and submitted to the SWA no later than the 28th calendar day after the individual begins work. Because this rule is non-negotiable, there are no grace periods or extensions. Receiving a Form after the deadline results in a loss of eligibility for the hire
Risks of Form 8850 Late Filing
Filing Form 8850 late risks between $2,400 and $9,600 in tax credits per eligible employee. These financial losses quickly compound, especially in industries with large hiring volumes and high turnover.
Common Reasons for Filing Form 8850 Late
The most common reasons why employers file Form 8850 late include:
1. Confusing the start date with the offer date: The 28-day deadline begins on the employee’s first day of work, not the day the offer is made or accepted.
2. Filing at the last minute: Trying to send the form on day 27 or 28 leaves no room for errors, delivery issues, or missing documentation.
3. Not using trackable delivery methods: Submitting Form 8850 by mail without tracking means you cannot prove timely submission. Instead, use certified mail, fax confirmation, or portal receipts.
4. Lack of a standardized workflow: If your Human Resources team does not have a documented onboarding checklist that includes Form 8850, they can overlook the form or miss the deadline, especially in high-volume hiring periods.
Partner with a Tax Credit Processing Firm
Work with MJA & Associates to ensure your company files Form 8850 on time for each eligible employee, optimizing tax credits.
