When Another Provider Admits They Operate Illegally

[finsup]

So another provider, who's an aquantice confided in me that she is operating illegally in a few ways. Being over ratio, not paying taxes, and lying (but the parent "gave permission" ) to collect full time rate income from the state even though dcp is not sending the child full time and doesn't actually need full time care like the state believes she does.
Ugh!! This is what gives LEGALLY unlicenced providers a bad rep. How do I even respond? I don't want to respond in anger, but I can't in good conscience reply "oh that's great!" What would you do?

[organicdclady]

I had an acquaintance tell me recently that she works at an illegal daycare. She told me that the place wasn't licensed because the parents "didn't want the provider to because then she would be obligated to take low income families"
I gave her a polite and informative lesson on how it works/why the provider is wrong/how the children are being put in danger and what the consequences would be if they were found out. She pretty much blew me off and I'm sure told people I'm a freak but I wouldn't have been able to sleep that night if I hadn't told it like it was.
I really don't know the right way to handle it. It is really a call it like you see it kind of situation. Obviously if your gut is telling you, call licensing and report.

[Alwaysgreener]

Yep same here, I heard a person say that she was "babysitting, in home" She felt as long as she called it babysitting and not Daycare it was legal. I tried to explain that it was not and if caught she could go to jail. That sent her into a rage, yelling at me, telling me to mind my own business. A week later, I heard she was looking for a day care. Not sure what come of that, but I was not going to volunteer my day care.

[DaveA]

I tell people all it takes is one angry parent, neighbor, or whatever to turn you in and you've got a ton of troubles. How I approach a lot of what I say depends on the person. Someone who didn't realize they had to be licensed (there's a lot of "information" out there that is way wrong) vs. someone who is intentionally acting outside the rules.

[finsup]

Yeah, im a bit more frustrated this time around. I tried to help her start up her business, legally, professionally etc. She ignored all of it and is now having problems. I made sure to explain the law and what penalities could happen so she does "know" it, just doesn't think it applies to her

[Cat Herder]

Anonymous
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1. without any name acknowledged, as that of author, contributor, or the like:
an anonymous letter to the editor; an anonymous donation.

2. of unknown name; whose name is withheld:
an anonymous author.

3. lacking individuality, unique character, or distinction:
an endless row of drab, anonymous houses.

"It's illegal. Childcare providers are required by law to report any taxable income. So if your home daycare provider asks to be paid under the table, she's running an illegal business."

"Your daycare provider must give you her taxpayer identification number. Without it, you won't be able to claim childcare-related expenses when you file your income taxes or take advantage of a dependent care flexible spending account. (If your daycare provider doesn't volunteer the information, give her a copy of IRS Form W-10 and ask her to complete it.)"

"Keep in mind that the rules are different if you hire a babysitter or nanny. If you pay someone to care for your children in your own home, you're considered an employer and are required to file the necessary paperwork with the Internal Revenue Service.""

"These underground operations may be attractive to parents because they are smaller and may be less expensive, but state officials say they are likely more dangerous."

"Unregulated childcare means no oversight, no checks and balances and no guarantees of properly trained staff. If they're choosing to operate illegally and not abide by the law, usually those people have something to hide,"


What does your mirror say?

[Mike]

For the sake (and safety) of the children, I would report.

[daycarediva]

I would report her for the subsidy alone. That's fraud and comes directly from tax payer dollars.

[sharlan]

I was that provider for 10 years, over 20 years ago. I basically followed the rules without knowing them, stayed within limits, etc, just never applied for a license as I didn't know it was mandatory.

An acquaintance in my neighborhood and I were talking at the park one day. She came to my home to get ideas on how to set up. As soon as she got her license she reported me so we wouldn't be in competition. She lasted one year, I'm still going.

I wasn't offended that she reported me. She did what she felt like she had to do.

[Unregistered]

I was that provider for 10 years, over 20 years ago. I basically followed the rules without knowing them, stayed within limits, etc, just never applied for a license as I didn't know it was mandatory.

An acquaintance in my neighborhood and I were talking at the park one day. She came to my home to get ideas on how to set up. As soon as she got her license she reported me so we wouldn't be in competition. She lasted one year, I'm still going.

I wasn't offended that she reported me. She did what she felt like she had to do.

Did you get in any trouble when she reported you?

[laundrymom]

She is committing theft and fraud.
She is allowing people who really need help to struggle because she's greedy.
I would absolutely report the fraud to the authorities. I also would inform the licensing team of the provider over ratios. She willingly told you.
I figure that if you know me, and know of my integrity, and you admit to being a greedy, thieving, fraudulent person, you should expect me to turn you in.

So another provider, who's an aquantice confided in me that she is operating illegally in a few ways. Being over ratio, not paying taxes, and lying (but the parent "gave permission" ) to collect full time rate income from the state even though dcp is not sending the child full time and doesn't actually need full time care like the state believes she does.
Ugh!! This is what gives LEGALLY unlicenced providers a bad rep. How do I even respond? I don't want to respond in anger, but I can't in good conscience reply "oh that's great!" What would you do?

[sharlan]

Did you get in any trouble when she reported you?

No. When they came to inspect I only had 1 daycare child. There were 5 neighbor kids playing with cardboard boxes in my yard, but I wasn't responsible for them. I was told it was legal for me to have one child but if I had more I needed a license. They gave me an application and left.

[AmyKidsCo]

She is committing theft and fraud.
She is allowing people who really need help to struggle because she's greedy.
I would absolutely report the fraud to the authorities. I also would inform the licensing team of the provider over ratios. She willingly told you.
I figure that if you know me, and know of my integrity, and you admit to being a greedy, thieving, fraudulent person, you should expect me to turn you in.

This.

Plus she's taking children that could be going to you, or other legal and ethical providers.

Not to mention that it bugs me when people cheat on taxes because those of us who do pay have to make up for those who don't.

[LysesKids]

So another provider, who's an aquantice confided in me that she is operating illegally in a few ways. Being over ratio, not paying taxes, and lying (but the parent "gave permission" ) to collect full time rate income from the state even though dcp is not sending the child full time and doesn't actually need full time care like the state believes she does.
Ugh!! This is what gives LEGALLY unlicenced providers a bad rep. How do I even respond? I don't want to respond in anger, but I can't in good conscience reply "oh that's great!" What would you do?

I personally hold my tongue & then call DHS about an illegal set up (yes, it has been proven to happen 2 times by me by people that are old school & not checking if laws have changed... both were closed down)...

I run legally & I make sure my policies online state as much; including what is considered legal or not in TN... hell, I had to prove to the manufactured home community that I was legally licensed exempt because my county requires the parks permission to be licensed. I had a brand new home set here so I made damn sure I was legal before opening.

Now I know also there are more illegal people working within 5 miles of me, but I worry about me & how I can be better and prove that running legal can be beneficial... I didn't get voted on City views best of the best for nothing - I have something to prove considering I am one of 5 homes going up against 45 centers

[Blackcat31]

She is committing theft and fraud.
She is allowing people who really need help to struggle because she's greedy.
I would absolutely report the fraud to the authorities. I also would inform the licensing team of the provider over ratios.

^^ I agree with this ^^

She willingly told you.
I figure that if you know me, and know of my integrity, and you admit to being a greedy, thieving, fraudulent person, you should expect me to turn you in.

^^^ Totally agree with this! ^^^