If a taxpayer utilizes the Good Faith Effort Exception for apprenticeship requirements, they are deemed to have met those requirements for the specific period and scope of the denied or unresponded request, provided they continue to satisfy the conditions of the exception. However, if a taxpayer fails to meet the apprenticeship requirements beyond the period covered by the exception or if the exception does not apply, penalties may apply.
The penalty for failing to meet the apprenticeship requirements is typically $50 per labor hour for which the requirements were not met. If the failure is determined to be due to intentional disregard, the penalty increases to $500 per labor hour.
Here’s a summary of the situation:
- Good Faith Effort Exception: If taxpayers request qualified apprentices and are denied or do not receive a response within five business days, they are deemed to have satisfied the apprenticeship requirements for the period of the request, provided they meet the exception’s criteria.
- Penalties After Using the Exception: Penalties apply if the taxpayer does not meet the apprenticeship requirements beyond the period covered by the Good Faith Effort Exception or if the exception does not apply due to intentional disregard or other reasons.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-penalties-for-failing-to-meet-the-apprenticeship-requirements-after-using-the-good-faith-effort-exception/
