First off I would like to thank you all for your input and advice. I truly appreciate it.
Since this situation has started, we have ONLY communicated with her through email and text and have saved all messages sent and received. The only voicemail received is from her refusing to provide any information for taxes until we pay in full. Though her first refusal was via email.
Our daughter did not attend this daycare the prior year, so I do not have her EIN#.
I do not care about getting any money from her. I believe we are paid up even. My worry is fighting with collections or damage to credit. And I am not understanding why she is making things so hard on us as EVERYTHING was fine until we disagreed with her policies and politely pulled our daughter from her care with 2 weeks notice paid.
As for being late all the time. I don't feel the need to explain myself there, all that needs to be said here is we were within the contract.
I think I know what I am going to do and again I really appreciate all of your feedback. Thanks!