Tax Credits Blog

There's nothing that says you can't

Many companies are wrestling with how to match credits with income since the credits for 2012 hires are still not determined by many states.  Can you book them in 2013 or do you loose them if you don't file an amended return for 2012 when they all sort themselves out.

I talked to one of the authors of IRS Notice 2013-14 which is the authority to eliminate the 28 day filing requirement and the requirement that the forms be signed on or before their hire date for all hires in 2012 and the first quarter of 2013.  She stated the standard IRS policy which said you must match the credits to the earnings. When I challenged her on the fact that the IRS notice allowed companies to go back to 2012 hires and file the paperwork with the state agencies up to and including 4/29/13, a time when most corporations should have filed their returns her reply was to file an amended return to capture those credits.  When I told her that companies don't want to file amended returns her reply was "there is nothing writen that says companies cannot report the 2012 credits in 2013".

I've also heard that ADP is telling its clients that there is a ruling to the effect that the IRS has allowed a company to file their 2012 credits in 2013 - I'd love to get a copy of that ruling - if anyone has one, please email it to me at This email address is being protected from spambots. You need JavaScript enabled to view it.