Originally Posted by Blackcat31:
Yikes... I agree with Cat Herder.
That is pretty risky considering the fine for operating illegally in CA is up to $200 PER day PER child and could be a felony charge. 
If a parent, neighbor or anyone withi this info reports you, you could be facing enormous legal issues as CA is one of the strictest states in prosecuting illegal care providers.
https://www.berkeleyparentsnetwork.o...ed%20operation.
I went and did a bit of reading on the IRS site and apparently if you are operating illegally and caring for more than 6 children, it sounds like the parent won't be able to claim their expenses and if they try to the IRS would be alerted.
I am not 100% positive as reading the IRS site is as easy as reading a upside down and backwards but bottom line is you could end up in some really big legal trouble.
I'd research getting licensed and start the process.
The faster you become legal the less trouble you might face.
You are correct. If you are in violation of your state child care licensing rules and care for more than 6 children, parents cannot claim the child care tax credit.