Can a day care legally with hold tax statement for taxes for money owed to them

[w_c_1977]

can they be penalized by the irs if they don't give me that form

[Opus 17]

They are required to give you form W-10 with their tax ID number.  There are no exceptions.

They are not required to provide you with a year-end statement, whether or not you pay on time.  Some care centers might for your convenience, but you are required to keep your own accurate records of what you paid.  (Canceled checks, receipts, etc.)  You also can not claim any expense for a tax credit that you have not actually paid in 2015.

[w_c_1977]

can they be penalized by the irs if they don't give me that form

[Opus 17]

I think it's a $50 fine.
What you can do to claim the credit if they won't give you the number, is to check the box for "refused."  You will have to print your return and mail it in, it can't be e-filed with a refused tax number.  When you print the return, attach a written statement that gives the care providers name, address, phone number, and describes the good faith efforts you made to get the tax number, and their refusal.

In the future, if you change day care providers, get the form on day 1 or don't go there.

Can you get a copy from any of the other parents?  Form W-10 only shows the care provider's name, address and tax number.  It doesn't have any personal or tax information about the customer.

[blackjackbimmer]

Opus 17 you are incorrect.  The childcare center is not required to provide Form W-10.  Form W-10 is a form used by the customer to request the name and EIN of the provider in order to file their return.  If a form is not submitted, then there isn’t any requirement to provide the information.  Also, a provider may refuse to provide the required information and not be subject to the $50 fine, if there is a reasonable cause.   Owing money to the center is reasonable cause to refuse providing the information.  

[Opus 17]

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@blackjackbimmer wrote:

Opus 17 you are incorrect.  The childcare center is not required to provide Form W-10.  Form W-10 is a form used by the customer to request the name and EIN of the provider in order to file their return.  If a form is not submitted, then there isn’t any requirement to provide the information.  Also, a provider may refuse to provide the required information and not be subject to the $50 fine, if there is a reasonable cause.   Owing money to the center is reasonable cause to refuse providing the information.  

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You're nitpicking over a 3 year thread, but whatever.  How about,

"They are required to give you form W-10 with their tax ID number if you give them the blank form."

A care provider who doesn’t give you a correct TIN is subject to a penalty for each failure unless the failure is due to reasonable cause and not willful neglect.

I don't agree that owing money to the day care constitutes reasonable cause.  If they have taken $1 from you, you need their tax information, even if you haven't paid in full.  Now, the parent should get the W-10 on day 1, before paying a dime.  But after that, I don't see being in arrears as a reasonable cause to withhold legally required tax information.  That would be up to the IRS, however.

[kalil-s-oneal]

I own a childcare center. Am I required by law to provide parents with an annual end of the year statement documenting their payments?

[KrisD15]

No. 

You are required to provide a Tax ID Number if asked. 

You are not responsible to provide a statement. 

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