Originally Posted by hwichlaz:
She should at the very least, claim the income.
The risk of the other parents claiming it is pretty small though...since they are likely already claiming their max benefit with the care they get during the school year, it wouldn't financially benefit them to claim more....but it's not a risk I would take.
All licensing can really do is just shut her down. And since her parents are her landlords there isn't an issue there.
So that leaves liability. That's her biggest risk. And since she's unlicensed, a double indemnity clause in her contract wouldn't offer her much protection...especially since, while parents can sign away their own rights to sue, they cannot do so on behalf of their children. Their children, if injury caused lasting effects, could sue when they become of age to do so.
Hmmm, that is interesting. If it is true that the State's only action is to shut her down, then it sounds like the risk is actually quite low, barring any serious accident (at which point, I don't believe she is required to carry insurance and I'm guessing the culpability would fall on the parents).
Some light research into the tax evasion issue seams to suggest that, more often than not, the IRS is fairly lenient on small cases of tax fraud, requiring only that the difference in unreported income be paid (taxed at the highest bracket and including interest). Add in the fact that it is pretty unlikely she will get audited.
I don't agree with the morality of it and I will still advise her to reconsider, but I guess I can see why she has decided to risk it, given that it is a one time deal, for only 8 weeks.