I Paid Cash!

[Unregistered]

I paid cash and checks. I ended services a month ago and in the beginning my provider said she gives a total and a receipt at the end of the year. Now it's the end of the year and she refuses to give her Tax ID to me until April. And she is denying she cared for my child so she can avoid claiming the income I paid in cash!! That is about $3000 I paid in cash and $1000 in checks. I plan to claim it all since she is in the wrong, but I am afraid I will be audited. I have check receipts and can get bank statements showing a withdraw every week and I have a signed letter from her stating she watched my daughter weekly 4-5 times each week, which I saved from my court date for child support. What do you think? I'm scared and she is avoiding taxes!!

[Cat Herder]

Pick up a W-10 from the post office (or print it offline from the IRS site http://www.irs.gov/pub/irs-pdf/fw10.pdf ) then take it to her. I'd recommend calling to let her know you are coming AND please don't go during naptime; the kids did not have a dog in this fight.

You won't need a SS/EIN number if you make an effort to get her to fill it out at any tax prep service. Every year at least one of my clients lose their paperwork (I give them out in January) and the preparer just calls me themselves.

I'd recommend keeping your check stubs as proof. They will also show a pattern for the cash payments. Any reasonable auditor would be able to see that.

Be aware that she may refuse to fill out the W-10 if you still have an outstanding balance; she has that right.

Good luck.

[mac60]

I would just claim what you know you paid. If you don't have the EIN number, just put down her name and addy. Let the IRS take care of the rest. I don't know what a W10 is.

Lady down the street did daycare for 7 years, someone got pissed at her and turned her in, she paid back taxes of 7 years. Parents can be brutal at times. I do know that many times people will "agree" to a lower rate and not claim it, but you can truly never trust someone.

[dave4him]

Tax evasion is a felony right?

[TomCopeland]

w-10

Catherder is correct. Fill out your child care tax credit Form 2441. If you don't have the provider's ID #, put on the back of this form an explanation as to what you did to try to get it (submitted the W-10 to her is enough). You will get the credit - the provider will be in trouble.

[Unregistered]

Thank you for all the advice!