See IRS pub 17:
https://www.irs.gov/publications/p17/ch32.html#en_US_2016_publink1000174406
Care Provider Identification Test
You must identify all persons or organizations that provide care for your child or dependent. Use Form 2441, Part I, to show
the information.
If you don’t have any care providers and you are filing Form 2441 only to report taxable income in Part III, enter “none” in line 1, column (a).
Information needed.
To identify the care provider, you must give the provider's:
-
Name,
-
Address, and
-
Taxpayer identification number.
If the care provider is an individual,
the taxpayer identification number is his or her social security number
or
individual taxpayer identification number. If
the care provider is an organization, then it is the employer
identification
number (EIN).
You don’t have to show the taxpayer
identification number if the care provider is a tax-exempt organization
(such
as a church or school). In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number.
If you can’t provide all of the
information or if the information is incorrect, you must be able to show
that you
used due diligence (discussed later) in trying
to furnish the necessary information.
Getting the information.
You can use
Form W-10 to request the required information from the care provider. If you don't use Form W-10, you can get the information
from one of the other sources listed in the instructions for Form W-10 including:
-
A copy of the provider's social security card,
-
A copy of the provider's completed Form W-4 if he or she is your household employee,
-
A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or
-
A letter or invoice from the provider if it shows the information.
You should keep this information with your tax records. Don’t send Form W-10 (or other document containing this information)
to the Internal Revenue Service.
Due diligence.
If the care provider information you
give is incorrect or incomplete, your credit may not be allowed.
However, if
you can show that you used due diligence in
trying to supply the information, you can still claim the credit.
You can show due diligence by getting
and keeping the provider's completed Form W-10 or one of the other
sources of
information just listed. Care providers can be
penalized if they don't provide this information to you or if they
provide
incorrect information.
Provider refusal.
If the provider refuses to give you
their identifying information, you should report on Form 2441 whatever
information
you have (such as the name and address). Enter “See Attached Statement”
in the columns calling for the information you don't have. Then attach a
statement explaining that you requested the information
from the care provider, but the provider didn't
give you the information. Be sure to write your name and social security
number
on this statement. The statement will show that
you used due diligence in trying to furnish the necessary information.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
