Child and Dependent Care Credit & Flexible Benefit Plans
This is archived information that pertains only to the 2002 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
As a child care center, are we required to give out tax statements to any of our parents who request one? Can we refuse to give a tax statement to someone who has a past due balance with us?
As a care provider, you are required to give your correct name, address, and Taxpayer Identification Number (TIN) to customers who paid for child care services during the year. A valid TIN can be the Employer Identification Number (EIN) of the business or the social security number of a sole proprietor. Form W-10 (PDF), Dependent Care Provider's Identification and Certification, or a similar statement may be used for such purposes.
A care provider who does not give the customer a correct TIN is subject to a penalty of $50 for each failure unless the failure is due to reasonable cause and not willful neglect. The failure of a customer to pay a bill in full would not normally constitute reasonable cause. The penalty does not apply to qualified tax exempt care providers.
When the care provider refuses to give the identifying information, the taxpayer can still claim the credit and is instructed to provide whatever information is available about the provider (such as name and address) on the form used to claim the credit ( Form 2441 (PDF), Child and Dependent Care Expenses, or Form 1040A, Schedule 2 (PDF), Child and Dependent Care Expenses for Form 1040A Filers). The taxpayer should write "see page 2" in the columns calling for the missing information. He/she would write at the bottom of page 2 that the provider refused to give the requested information. This statement will show that the taxpayer used due diligence in trying to secure and furnish the necessary information.
References:
12.1 Small Business/Self-Employed/Other Business: Entities: Sole Proprietor, Partnership, Limited Liability Company/Partnership (LLC/LLP), Corporation, Subchapter S Corporation
I recently formed a limited liability company (LLC). The LLC has no employees. Do I need a separate Federal Tax ID number for the LLC?
No, you will not need a separate Federal Tax ID number for the LLC if you are the sole owner of the LLC and the LLC has no, employees. If you are not the sole owner of the LLC or if the LLC has employees, you will need a separate Federal Tax ID number for the LLC.
References:
- Publication 1635 (PDF), Understanding your EIN - Employer identification Number - IRS
- Form SS4 (PDF), Application for Employer Identification Number
- Form 8832 (PDF), Entity Classification Election
12.5 Small Business/Self-Employed/Other Business: Form SS-4 & Employer Identification Number (EIN)
Is an employer ID number the same as a tax ID number?
Yes, an employer identification number, or EIN, is also known as a taxpayer identification number, or TIN. A sole proprietorship that has no employees and files no excise or pension tax returns is the only business that does not need an employer identification number. In this instance, the sole proprietor uses his or her social security number as the taxpayer identification number.
References:
As a sole proprietor, do I need an employer identification number (EIN)?
As a sole proprietor, you would need to obtain an identification number if either of the following apply: (1) you pay wages to one or more employees, or (2) you file pension or excise tax returns. If these conditions do not apply, your social security number is your taxpayer identification number.
References:
Is an employer identification number (EIN) required if the husband and wife are the only persons working in the business?
If both of you carry on a business together and share in the profits and losses, you are a partnership and each would receive a Form 1065, Schedule K-1 (PDF) that is important for determining your self-employment income. If you work for your spouse, you should receive a Form W-2, showing taxes withheld and the owner spouse would claim the wages paid to you as a deduction. Both a partnership and a sole proprietor with an employee must have an EIN.
References:
Does a small company need a tax ID number?
A sole proprietor who does not have any employees and who does not file any excise or pension plan tax returns is the only business person who does not need an employer identification number. In this instance, the sole proprietor uses his or her social security number as the taxpayer identification number.
References:
How do I apply for an employer identification number (EIN)?
To obtain an EIN, you must complete Form SS-4 (PDF), Application for Employer Identification Number. After you have completed the Form SS-4, you can get the EIN by mail, FAX, or by phone. The instructions for Form SS-4 provide both an IRS service center address and a phone number to apply under the Tele-TIN program. For more information, refer to Tax Topic 755, Employer Identification Number (EIN) - How to Apply, or Publication 1635 (PDF), Understanding Your EIN.
References:
I would like to submit Form SS-4, Application for Employer Identification Number, by fax. What is the fax number?
You can find the fax telephone numbers by calling the IRS at 1-800-829-0922 or refer to Tax Information for Business. This can be found on the IRS website www.irs.gov under Businesses.
References:
Under what circumstances am I required to change my employer identification number (EIN)?
If you already have an EIN, and the organization or ownership of your business changes, you may need to apply for a new number. Some of the circumstances under which a new number is required are as follows:
If I have an employer identification number (EIN) and do not need it, how can I revoke the EIN?
If you do not need to retain your EIN and wish the EIN to be revoked, you can write to the Entity Control Unit at the IRS Service Center where you would normally file your returns and make that request. Make sure that either the President or other Principal Officer signs the statement, if it is a corporation, or a managing member, if it is a limited liability company, or a general partner, if it is a partnership.
References:
Do businesses have to obtain the taxpayer identification number (TIN) from vendors and keep it somewhere on file?
In general, businesses are required to obtain the TIN from vendors if they are required to file any return, document or other statement that calls for the taxpayer identification numbers (TINs) of other taxpayers. Form W-9 (PDF), Request for Taxpayer Identification Number and Certification, can be used to make the request. The business should also maintain the verification of these numbers in their records.
References:
Tax Topics & FAQs | 2002 Tax Year Archives | Tax Help Archives | Home
|
