Termed Families and W-10

[GirlMomma]

I termed a family last year for non-payment. I mailed their belongings and W-10 - it was delivered per tracking number. They were termed before I had Sproutary so all paper receipts were sent home at the time of payment.

I received a text today requesting my EIN number and the amount paid.

I’m not sure how to handle this. Would you reprint the W-10 and take the time to go through your receipt logs or what?

[e.j.]

I would provide it if at all possible. I'd rather not have dc families provide their own yearly totals on tax forms since they may not come up with the same total I do. I don't want to have to go through the hassle of a tax audit if our totals don't match up.

[GirlMomma]

e.j. This is my first tax year so please bare with me! LOL

The W-10 doesn’t have a place for the total amount paid to be written in, so all of the families I have in Sproutary were given/mailed a statement with their account balance.

I’ve seen other posters say if they’ve had a family leave, they give the client their W-10 with their belongings. I’ve never seen anyone post that a former client has reached back out to the provider and ask for one/the amount they paid.

If I am required to send it again, basically doing the work twice, I won’t send it with their belongings, I’ll just mail it at tax time. Does that make sense?

[Blackcat31]

Alwaysgreener
Just because they asked doesn't mean she is required to give it. They need to bring the W-10 form to the provider and request it be filled out.
@GirlMomma
Did they still owe you money if you termed for non-payment? Tom mentions requesting the money they might owe BEFORE providing any information to them.

[e.j.]

I think BC is right; you don't have to give the parents anything unless they give you a W-10 to fill out. I always give my dc parents the information they'll need as a courtesy to them and because I want their totals and mine to be the same so differing information doesn't trigger an audit for me. (I'm careful when I file my taxes to make sure I'm giving correct information that I can back up in the event of an audit; I just don't want to go through the anxiety and hassle of having to do that if I can prevent it.)

I give each parent a copy of the form I use and have them sign my copy so I can keep it on file in case there's any question about what information the parent was given and if it's correct. If a parent leaves during the year, I send their copy to the mailing address I have on file. I keep a copy of the form for my own records with the date and address I mailed it to and a notation that the child had left my care. I usually give or mail the forms to parents in early January. Every single year, I get a parent or two who asks for another copy because they've lost the original I gave them so I expect it now and keep my copies handy until tax season is done. I don't usually give parents the forms on their last day here because there's that much more time to lose it before they need it for their taxes.

[GirlMomma]

e.j. I agree. I’ll probably send it to him to avoid the hassle because obviously this family can’t be trusted to pay me let alone report correctly. I have a feeling that if I don’t send them the amount, they’ll over report. They’re the notorious tax time “rich” type of people.

[Alwaysgreener]

I created my own w10 that has amount spot and duplicate. My portion does not have the amount and I have them sign it. Their portion is similar with my info and amount that I sign and I put it in a seal envelope so only they can see the amount.

I once mailed termed families their form but I regretted it Later. Now I prepare them for everyone, let current families and families that left on good terms know that they are ready.

If a termed family asks, depending on the family I will either have them stop by to get their signature or mail it certified to get their signature.

[GirlMomma]

Blackcat31 they were advised four months prior to term to pay on Monday’s or the next missed payment was a term. They didn’t pay on Monday (it was technically a day a holiday was being observed but I was opened, I didn’t observe the holiday) and on Tuesday they no call/no showed and didn’t send payment. By 5:30 PM (closing time) I termed the contract. They reached out at 8:30-9 PM Tuesday asking what they owed and I informed them of the termination for non-payment. Would you consider that owing me money?

Alwaysgreener I like the idea of having them sign it. I may do that from now on. Why did you regret sending them though?

[Alwaysgreener]

Yes they technically they owe but I would let go since it has been this long.

You could message them to send you the appropriate form to complete and you will be happy to get the info that you need. But don't tell them "w-10" let them figure it out on their own.

As for why I regretted, I didn't trust the two families that I sent it to. I was trying to avoid seeing them again, and I didn't want on my property. I failed to send them certified letter and wish I had made them work for it. Possible tell the one family to pay up.



Why did I regret it?

[GirlMomma]

Alwaysgreener I gotcha. That makes a lot of sense.