Originally Posted by Lucy:
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.