Targeted jobs credit ruling does not waive certification requirement.

• Author: Howe, Vicki
• Position: Brief Article

Businesses that have qualified for the targeted jobs credit in the past should be aware that the IRS has ruled in Rev. Rul. 94-8 that there will be no waiver of the certification requirement during the period the crcdit had expired. However, there is some relief for those employers that had applications for certification pending during the expiration period.

The Sec. 51 targeted jobs credit expired July 1, 1992, but was retroactively reinstated on Aug. 10, 1993 by the Revenue Reconciliation Act of 1993. During the period the credit had expired, employers may not have gotten the certifications for their employces that were a prerequisite to the credit, because of uncertainty as to whether the credit would be retroactively extended.

It was hoped that since the credit was retroactively reinstated, the Service would waive the certification requirement for the period the credit was expired. However, the IRS did not adopt...