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-   -   What Is Actually REQUIRED For Me To Give Parents For Taxes? (https://www.daycare.com/forum/showthread.php?t=60006)

Lucy 02-20-2013 02:09 PM

What Is Actually REQUIRED For Me To Give Parents For Taxes?
 
I posted this in the Provider forum and it was suggested I ask here.

I'm not just looking for an answer or advice. I would like a link to an official website or maybe IRS instructions that I can print out and give an uninformed tax guy.

As far as I know, I am not required to give ANYTHING, but I provide a W-10. One parent's tax guy is telling her I need to give her a letter stating names, dates, ss numbers, amounts, etc etc. I told her he's wrong and I want to print out something to show him to prove it. I don't want him spreading incorrect info to his clients.

Do you know of a definitive, official website I could link him to? Thanks!

TomCopeland 02-20-2013 03:27 PM

W-10
 
Quote:

Originally Posted by Lucy (Post 321379)
I posted this in the Provider forum and it was suggested I ask here.

I'm not just looking for an answer or advice. I would like a link to an official website or maybe IRS instructions that I can print out and give an uninformed tax guy.

As far as I know, I am not required to give ANYTHING, but I provide a W-10. One parent's tax guy is telling her I need to give her a letter stating names, dates, ss numbers, amounts, etc etc. I told her he's wrong and I want to print out something to show him to prove it. I don't want him spreading incorrect info to his clients.

Do you know of a definitive, official website I could link him to? Thanks!

I've fielded a lot of questions about giving parents receipts this year. I don't know why.

Here's the Instructions to IRS Form W-10:http://www.irs.gov/pub/irs-pdf/fw10.pdf

The form is directed at the parent. In other words, the instructions tell the parent what to do about giving this form to the provider. There is nothing said about the provider having to give the form to the parents. The form does not contain any space for the provider to enter how much the parent paid them! So, when people say the provider is required to give the parent a statement saying how much the parent paid, this is false. There is nothing her or anywhere else in IRS documents that says the provider has to give the parent a receipt. Anyone who says a provider is required to do something, should produce an IRS document that says this, otherwise they should back off.

Note that these instructions say the provider is required to give a valid TIN number to the parent. Failure of the provider to give a valid TIN (EIN is a TIN) means the provider can be fined $50 by the IRS. But, if the parent doesn't give the W-10 to the provider, there is nothing that says the provider must give the W-10 to the parent! So, if the parent doesn't give this form to the provider, the provider has no responsibility to give anything to the parent.

I believe it is a good business practice for providers to give parents an end-of-year receipt with their EIN on it and get the parents to sign a copy to keep for the provider's files. Some providers refuse to give a receipt or EIN to parents who leave owing them money. This makes sense.

Hope this helps.

Lucy 02-20-2013 03:32 PM

Thank you!!!!!!!

I clicked your link and it's. Just the W-10 which I already have and have given all parents. There is no official q and a site that I could print for this ill-informed tax preparer to show him he is giving incorrect information to his clients?

TomCopeland 02-20-2013 04:19 PM

W-10
 
Quote:

Originally Posted by Lucy (Post 321452)
Thank you!!!!!!!

I clicked your link and it's. Just the W-10 which I already have and have given all parents. There is no official q and a site that I could print for this ill-informed tax preparer to show him he is giving incorrect information to his clients?

Here's a link to the irs website where you can open up the W-10 form and the instructions: http://www.irs.gov/uac/Form-W-10,-De...-Certification

MarinaVanessa 02-20-2013 04:32 PM

Quote:

Originally Posted by Lucy (Post 321452)
Thank you!!!!!!!

I clicked your link and it's. Just the W-10 which I already have and have given all parents. There is no official q and a site that I could print for this ill-informed tax preparer to show him he is giving incorrect information to his clients?

I think what Tom is saying here is that there is nothing out there that will say this because there is nothing out there in IRS land that requires providers to give this information out. The IRS won't write something up to say what you shouldn't do, they only write stuff up about what is required to be done ... hence the W-10 instructions for parents. If we were required to give anything else out then those requirements would also be on the w-10 instructions for parents but because those requirements do not exist they do not.

Tom is not a CPA but he is an all and wonderful Oz when it comes to family child care stuff ... he's the #1 go to guy in America so he would know his stuff ;).

I think that printing out Tom's blog or page from his Family Child Care Record Keeping Guide that says that NOTHING else is required from us is enough to hand to your DC family and you can either have them give their tax guy a copy or you can mail him a copy also. He's probably either misinformed or he's saying that having this additional information is helpful to have ... but then again me washing and sorting DCK's laundry, cooking dinner for all of my DCF's and charging my DCF's unrealistically low rates is also extremely helpful but I'm not going to that either :lol:. I mean it would me nice for them, nut not going to happen ;).

Lucy 02-20-2013 06:13 PM

Quote:

Originally Posted by MarinaVanessa (Post 321498)
I think what Tom is saying here is that there is nothing out there that will say this because there is nothing out there in IRS land that requires providers to give this information out. The IRS won't write something up to say what you shouldn't do, they only write stuff up about what is required to be done ... hence the W-10 instructions for parents. If we were required to give anything else out then those requirements would also be on the w-10 instructions for parents but because those requirements do not exist they do not.

Tom is not a CPA but he is an all and wonderful Oz when it comes to family child care stuff ... he's the #1 go to guy in America so he would know his stuff ;).

I think that printing out Tom's blog or page from his Family Child Care Record Keeping Guide that says that NOTHING else is required from us is enough to hand to your DC family and you can either have them give their tax guy a copy or you can mail him a copy also. He's probably either misinformed or he's saying that having this additional information is helpful to have ... but then again me washing and sorting DCK's laundry, cooking dinner for all of my DCF's and charging my DCF's unrealistically low rates is also extremely helpful but I'm not going to that either :lol:. I mean it would me nice for them, nut not going to happen ;).

LOL Good point! I did find this: http://www.familychildcaretaxes.com/...cordNumber=102 It has some good information on it. It also recommends getting one of Tom's books!!

So I guess I'm not going to find something that will definitely say, "You, as a Childcare Provider, are NOT required to provide your clients anything but a Tax ID Number". I will just print a few passages from here and from the link I gave above and send those to this H&R Block-head (lol).

Thanks all!!


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