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  #1  
Old 12-19-2015, 10:46 AM
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Default Professional Wording for Tax Information Letter?

Professional wording help please! Basically I'm sending out my tax info this week. Each family gets whatever form it is (have it, just don't remember the number) with my EIN and amount they paid me etc. I know I don't have to do this but it is helpful to them and takes me all of 5 minutes to fill out.
This year though...I have a family that I termed and it did not end well. I know the person they are using for care is not paying taxes. She isn't operating illegally in the sense of too many kids but I do know she doesn't, and doesn't plan to, claim the income. I need a letter that states very clearly (think 5th grade level) that they cannot claim the entire amount they paid in Childcare under my EIN. That they need to obtain her information for the rest of it. I have my receipts and records to back everything up (as do they, if they kept their copies) so if it comes down to having to "prove" anything, I'm fine. But I really would rather avoid that. I'm not sure if they would try to do it knowing that its wrong (wouldn't surprise me) or if they are just ignorant and think they can claim all of the income under one number without realizing its not legal (this wouldn't surprise me either). Suggestions?
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Old 12-19-2015, 01:34 PM
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Maybe a note that says something like, per IRS rules, please remember to claim the money you have paid to each childcare provider separately? Tax returns allow you to list them out.
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Old 12-19-2015, 01:41 PM
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I think if they claimed too much they would be the ones who would be audited and have to prove what they paid before you would be audited. But I could be wrong on that.

I would probably just write something like this:

Dear EX DCP,

Attached you will find a completed W-10 for the 2015 childcare tuition that was paid to finsup daycare between the dates of January 1, 2015 to March 23, 2015. Your last payment to finsup daycare was made on March 15, 2015.

Thank you,
EX Provider
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Old 12-20-2015, 12:13 AM
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I would include the amount they paid you on the letter with the EIN. That was it is laid out for them.

I once accidentally didn't put enough $ under how much a family paid me and the IRS did in fact come after me for it when the DCF put a higher amount. I was in the wrong and happily paid the extra taxes and promptly hired an accountant lol. Hope they stick with what they paid you
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Old 12-20-2015, 09:23 AM
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Thanks everyone! I am really praying for no problems. I don't want to go through the hassle of being audited if they try and claim all their Childcare under mine because someone else isn't doing things legally. And I'm having my husband (who is awesome with math) triple check my numbers lol. I am awful at math and if I could afford to hire a professional accountant I so would be doing it. Thankfully my husband does pretty well despite it not being his job.
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Old 12-20-2015, 09:44 AM
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I am having everyone sign their statement so I have proof they agreed with the number. Those who are no longer with me, I am going to mail the statement with no EIN with a SASE for them to sign and mail it back. When I get it back I will put my EIN on it and photocopy and send them a copy.
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  #7  
Old 12-20-2015, 06:29 PM
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Quote:
Originally Posted by Thriftylady View Post
I am having everyone sign their statement so I have proof they agreed with the number. Those who are no longer with me, I am going to mail the statement with no EIN with a SASE for them to sign and mail it back. When I get it back I will put my EIN on it and photocopy and send them a copy.
Are you sending a letter with it to explain?
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  #8  
Old 12-20-2015, 08:07 PM
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Yes something short and sweet.

"Please check your records and make sure you agree with the amount you have paid me for the year. If you agree with my number, please sign and return this and I will return to you a copy with my EIN for your taxes.
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  #9  
Old 12-21-2015, 06:44 AM
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I have everyone sign the tax statement with the amount paid to me . I do not mail out statements or amounts if a past client needs one then they must come back to me and sign the form .
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Old 12-21-2015, 07:11 AM
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Quote:
Originally Posted by Second Home View Post
I have everyone sign the tax statement with the amount paid to me . I do not mail out statements or amounts if a past client needs one then they must come back to me and sign the form .
That would probably make my life easier. I may do that with two of my families. One though I am on good terms with and they live in a town 10 miles away so I may do the mail thing for them.
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Old 12-21-2015, 07:15 AM
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Quote:
Originally Posted by Second Home View Post
I have everyone sign the tax statement with the amount paid to me . I do not mail out statements or amounts if a past client needs one then they must come back to me and sign the form .


I issue their tax statement on their last day of care (provided they gave proper notice).

If they leave with no notice, then they must come to me for their tax info.
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  #12  
Old 12-21-2015, 07:23 AM
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Yes , I have also given the statement to parents who are moving far and would have a hard time coming all the way back on the last day of care .

I just like to be able to have the statement signed in front of me and not having to worry about it getting lost in the mail .
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  #13  
Old 12-21-2015, 10:54 AM
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Quote:
Originally Posted by Blackcat31 View Post


I issue their tax statement on their last day of care (provided they gave proper notice).

If they leave with no notice, then they must come to me for their tax info.
See my one that left on good terms left me with no notice. But I guess I was okay with that because he was very part time. They are the ones I am worried about. The other two are seriously going to have to come ask as I don't care to bother with them at all.
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  #14  
Old 12-24-2015, 09:33 AM
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What form do you provide to parents that gives an amount paid? I use a w-10, but those forms have no where to write an amount. I like the idea of parents having to sign a form with an amount, can someone share what they use?
Thanks!
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Old 12-26-2015, 04:43 AM
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Quote:
Originally Posted by Unregistered View Post
What form do you provide to parents that gives an amount paid? I use a w-10, but those forms have no where to write an amount. I like the idea of parents having to sign a form with an amount, can someone share what they use?
Thanks!
I'm so glad you asked because I was thinking the exact same thing.
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  #16  
Old 12-26-2015, 09:26 AM
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What form do you provide to parents that gives an amount paid? I use a w-10, but those forms have no where to write an amount. I like the idea of parents having to sign a form with an amount, can someone share what they use?
Thanks!
I just write the total at the top of tne W-10 and make two copies. I have parents sign and date each copy. I do tne same. One copy goes to tne parent and one goes in my files.
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  #17  
Old 12-26-2015, 11:38 AM
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Quote:
Originally Posted by Unregistered View Post
I just write the total at the top of tne W-10 and make two copies. I have parents sign and date each copy. I do tne same. One copy goes to tne parent and one goes in my files.
I just make a "tax receipt". I have never had a parent ask for or bring me a W10. In fact back when I first did daycare, I had never heard of that form and used to give my SS#!
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  #18  
Old 12-29-2015, 07:18 PM
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Quote:
Originally Posted by Second Home View Post
I have everyone sign the tax statement with the amount paid to me . I do not mail out statements or amounts if a past client needs one then they must come back to me and sign the form .
same here.
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