Is this person evading taxes?

Question

We had put our son into a daycare last year of March throughout the year but we were paying the daycare lady with personal checks. We once wrote out a check payable to her daycare but she was quick to ask us to re-write the check in her name. Well, here it is 2007, TAX TIME, and we had to request her tax info for filing purposes. First off, she completely ignores us and will not provide us with the EIN / SSN number (thats okay, we already reported it to the IRS) and we got copies of the checks (front and back) that we issued to her and she's made every single check payable to her sister. Do you think she is evading taxes by having her sister cash the check for her so she doesn't have to report income? Yes, yes, she may not have a checking account, but not giving someone your EIN/SSN for taxes (she COULD be tax-exempt but she still has to provide the information), ignoring phone calls/emails AND certfied letters..now this? What do you think??

Oh, might I also add that I checked with the CA state licensing department (keep in mind that we enrolled our son in her daycare in March 2006 and she MOVED in..July/August) and her license for the NEW house was still in pending status - and that was when my son was attending her daycare! Needless to say, my son no longer goes there as of Sept 2006 but the state filed an anonymous complaint against her immediately. I guess she'll be facing some fines with CA state as well as having the IRS audit her. Sucks to be her, eh.

Answer 1

Yes, she hasn't been reporting her babysitting income, nor does she plan on it. If you really want to get the credit for the expenses you paid, you would have to mail the return to the IRS. You won't be able to file electronically without a social security number on that form. Good luck.

Answer 2

Yes. The same thing happened at a local daycare and she is now shut down and facing very heavy fines from the IRS after an extensive audit.

Answer 3

Uh, correction expensive, take a seem at Willie Nelson, he saved away from taxes to the music, i've got confidence it became over 7 mil. to the IRS and that's what stimulated him to create his album suggested as "The IRS Tapes" simply by fact confident - that's rather unlawful to ward off paying your taxes. Now, as much as now as i understand, you're allowed to no longer declare something decrease than the two 500 or 600 money as a 1060 self sustaining contractor and not made pay on it. Its additionally genuine that folk which includes waitstaffers who earn education are actual required to pay taxes and declare their education. i might upload that it is likewise very genuine that as quickly as you record for unemployment reward, you're taxed on the actually examine for federal, and so on. and once you record your annual taxes you need to state in spite of if or no longer you "claimed" unemployment reward simply by fact, and confident i comprehend it stinks, yet my husband b----ed and moaned approximately my declare simply by fact he had to pay taxes for it simply by fact we did no longer have adequate donations or different deductions to offset it. so as that's purely a style of a few legals and illegals. i would not attempt and slide decrease than the cord besides simply by fact as quickly as an IRS auditor does their little stint, you or whoever gets caught besides, it particularly is purely a rely of X.

Answer 4

It sounds like that's exactly what she's doing, especially since she won't provide her SSN. It would have been best to get that info before you hired her.

Answer 5

she is required by law to supply you a statement at the end of the
year so you can file this on your taxes. If she refuses to give
you a statement I believe she is trying to avoid reporting income
for some reason or other.

Answer 6

Well, it sure sounds like she's trying to evade taxes. Not very successfully for long, it doesn't sound like.