Home Day Care Providers — be ware
IRS is looking (assuming) you are not reporting all of your income….
If you get picked for an audit, they want to see
- Your sign in and sign out sheets
- To know what your policy is for payment (i.e. – do you charge if the kiddos miss a day)
- Do you have a sliding scale for fees based on family income, child’s age?
One provider (who did not have good records) paid taxes on 22,000 more that she collected)
Keep good records