DIRECTIVE	:	EMPLOYMENT SERVICE PROGRAM LETTER NO. 05-98
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	JOHN R. BEVERLY, III Director U.S. Employment Service
SUBJECT	:	Sources of Documentary Evidence to Establish Age and Residence Under the Work Opportunity Tax Credit (WOTC) program.

1. Purpose. To transmit formal policy guidance regarding sources of documentary evidence that may be used by the Designated Local Agencies (DLAs) to verify the age and address of individuals under the WOTC program.

2. References. The Taxpayer Relief Act of 1997 (P.L. 105-34); ESPL No. 5-97, dated November 25, 1996; ETA Handbook No. 408, First Edition, July 1997; and Addendum to Handbook, February 1998.

3. Background. At the WOTC national conference held in November 1997, the U.S. Employment Service (USES) announced that the Immigration and Naturalization Services' Form I-9 was being removed from the list of documentary sources that could be used to verify age and/or residence under the WOTC program. After this conference, interim instructions were provided to the Regional and State WOTC Coordinators, which further clarified our position, requested input on alternative sources of documentation in lieu of the I-9, and announced that DLAs should continue to accept the I-9 as proof of age and address until formal notification is received from ETA that its use has been discontinued.

4. Information. Recommendations and comments were received from the DLAs and the employer community and have been reviewed by both the United States Employment Service and the Internal Revenue Service (IRS). The alternative sources of documentation listed on Attachment A, were drawn from this input.

5. Policy. By this memorandum, authority to accept the I-9 form as a source for verifying age and residence under the WOTC program is officially rescinded. As an alternative, DLAs may accept as documentation to establish age and residence the sources listed in Attachment A. Other state-specific sources or methods, including electronic record matching, may also be used with prior review and approval by the appropriate WOTC Regional Coordinator.

   Since we recognize that DLAs, employers, and employer representatives will require some lead time to make this change without disrupting their program operations, we are providing a 60-day grace period, from the date of this memorandum, during which the I-9 form can continue to be used by all parties. DLAs are advised to continue to accept the I-9 form as suitable source of documentation of age and address for all timely submitted certification requests for new hires made through May 18, 1998. This grace period is intended to allow a reasonable time period for the phaseout of the I-9 form and the introduction of the new sources of documentation.

6. Action Required. State Employment Security Agency Administrators are requested to:

   1. provide this information to all WOTC SESA Coordinators, appropriate staff, employers and their representatives, participating agencies and other WOTC partners; and

   2. ensure the DLAs receive, understand, and implement this policy change for employer certification requests submitted for the Work Opportunity Tax Credit program.

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

8. Attachment. "Sources of Acceptable Documentary Evidence to Establish Age and Residence Under the Work Opportunity Tax Credit Program."