Extension for 2007 WOTC processing forms

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2009/TEGL11-08c1acc.pdf

CLASSIFICATION
                                                         WOTC
     EMPLOYMENT AND TRAINING ADMINISTRATION
                                                         CORRESPONDENCE SYMBOL
                ADVISORY SYSTEM
                 U.S. DEPARTMENT OF LABOR                OWI
                      Washington, D.C. 20210             DATE
                                                         March 25, 2009

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 11-08 Change 1

TO:                ALL STATE WORKFORCE AGENCIES
                   ALL STATE WORKFORCE LIAISONS
                   ALL REGIONAL WOTC COORDINATORS

FROM:              DOUGLAS F. SMALL /s/
                   Deputy Assistant Secretary

SUBJECT:           Extension Period Granted to all State Workforce Agencies (SWAs) and
                   Employers for the Uninterrupted Use of All 2007 Work Opportunity Tax
                   Credit (WOTC) Processing Forms

l. Purpose. The purpose of this advisory is to inform the SWAs that the Employment
   and Training Administration (ETA) is granting an extension period where
   employers or their representatives can file WOTC certification requests for new hires
   using the previously OMB-approved June 2007 ETA Forms 9061 or 9062.

2.     References. The American Recovery and Reinvestment Act of 2009 (Public Law
      111-5), (Recovery Act); the Small Business and Work Opportunity Tax Credit Act of
      2007 (Public Law 110-28); the Tax Relief and Health Care Act of 2006 (Public Law
      109-432); the Working Families Tax Relief Act of 2004 (Public Law 108-311); the Job
      Creation and Worker Assistance Act of 2002 (Public Law 107-147); Paperwork
      Reduction Act of 1995; Internal Revenue Code of 1986, Section 51, as amended;
      Training and Employment Guidance Letter (TEGL) No. 11-08, dated February 19,
      2009, Extension of the Information collection for the Consolidated Work Opportunity Tax
      Credit Program: Revised Reporting and Processing Forms; TEGL No. 19—05, dated
      March 7, 2006, New Streamlined Reporting Requirements and Extension of the Information
      Collection for the Work Opportunity and Welfare-to-Work Tax Credits; TEGL No. 05-07,
      dated September 11, 2007, Reauthorization of the Work Opportunity Tax Credit and
      Other Program Changes; TEGL No. 20-06, dated April 3, 2007, Reauthorization of the
      Work Opportunity Tax Credit and Other Program Changes; ETA Handbook No. 408,
      November 2002, Third Edition (the Handbook); and the November 2008 version of
      the May 2005, Addendum to the Handbook (OMB No. 1205-0371).


RESCISSIONS                                     EXPIRATION DATE:
None                                            Continuing

                                          -2-

3. Background. Public Law 109-432 signed into law on December 20, 2006, and 110-28
   signed into law on May 25, 2007, reauthorized, amended and expanded the WOTC
   Program. To address the changes and new provisions introduced by these two
   pieces of legislation, ETA updated the WOTC reporting, administrative and
   processing forms and other program related materials, and developed a modified
   automated reporting system and procedure. All revised and updated forms were
   approved by OMB with a June 2007 date. On September 6 and 7, 2007, ETA
   provided to the regions and the states a two-session training webinar on the new
   reporting requirements.

   ETA issued TEGL 11-08 on February 19, 2009, transmitting to the SWAs and WOTC
   participating partners all the reporting, processing and administrative forms and
   program related materials cleared by OMB and dated November 2008. The
   guidance in this TEGL required the SWAs and participating employers to begin
   using the November 2008, OMB-cleared ETA Forms 9061, Individual Characteristics
   Form or 9062, Conditional Certification for their certification requests within two
   weeks from the date of issuance of that TEGL. Current OMB No. 1205-0371 data
   collection approval includes ETA Forms 9061–9063, 9065, 9057, ETA Form 9058 -
   Report 1, and 9059. The revised forms incorporate the latest amendments and
   provisions introduced by P.L. 110-28 for new hires who begin to work for an
   employer after May 25, 2007. The June 2007 and November 2008 versions of ETA
   Form 9061 are very similar in content. The November 2008 version, however, was
   reformatted in a user-friendly and easy-to-use style and revised to include the
   comments received during the Federal Register Notice comment period which
   expired on March 10, 2008.

   On February 17, 2009, the President signed into law the American Recovery and
   Reinvestment Act of 2009. The Recovery Act amended Section 51 of the Internal
   Revenue Code by adding two additional target groups to the WOTC Program. The
   amended Section 51 (d) (14) provides that unemployed veterans and disconnected
   youth who begin work for an employer during 2009 and 2010 shall be treated as
   members of a targeted group for purposes of the WOTC. ETA is in the process of
   updating the recently OMB-approved forms and program materials to reflect these
   new provisions. A separate advisory transmitting the new legislative changes, the
   updated forms and guidance on how to administer these two new target groups will
   be issued in the immediate future.

                                            -3-
4. Reporting Authority. Reporting, program administration and processing forms,
   and all other program-related materials for the consolidated WOTC Program are
   approved according to the Paperwork Reduction Act of 1995, under OMB No. 1205-
   0371 and are all dated November 2008. This authority is effective through
   November 30, 2011.

5.    Reporting Instructions. Given the challenges of implementing the November 2008
     forms under the timeframe set forth in TEGL 11-08, and the further changes required
     based on the addition of two new target groups by the Recovery Act, ETA is
     permitting employers to continue to file with the SWAs the June 2007 (previously
     OMB approved) ETA Forms 9061, Individual Characteristics Form or 9062, Conditional
     Certification for the new hires listed in these two forms only as part of their
     certification requests. This extension period is granted until further notice. Upon
     publication of final guidance by the Internal Revenue Service, ETA will issue policy
     guidance to the SWAs and the business sector addressing the two new target
     groups’ provisions. SWAs are instructed to accept either the June 2007 or the
     November 2008 ETA Forms 9061 or 9062 from employers during this extension
     period.

6. Action Requested. SWA administrators are requested to provide this TEGL to all
   WOTC State Coordinators and related program staff, and ensure the information
   and guidance provided is shared with the private sector businesses, their
   representatives, and all other Federal and state partners.

7. Inquiries: Direct all questions to the appropriate Regional WOTC Coordinator.