Nanny w-2 941 etc

[TAXMAN]

I stumbled into this one. TP owns a business. Pays employees including nanny from business. Includes all on 941's etc. Issues w-2's. It looks like on Schedule C I should subtract out nanny and head that number to 2441. Is there a problem that these wages and ss/mt on Schedule C will not match what is on 941's etc? What do you think?

[Mr. Pencil]

Is there a problem that these wages and ss/mt on Schedule C will not match what is on 941's etc?

Sure it's a problem--it's always a problem when taxpayers don't follow the instructions. That's why we have year-round employment! But it's not a bad problem, more like a nuisance. Actually, what he does makes a lot of sense and overall is probably less of a nuisance than the right way. That's why it's not particularly unusual.

So make the necessary adjustments on his return and smoothly tell your client to call you immediately if he ever gets a letter from IRS. You'll probably be able to handle it with a single phone call and fax (to the secret line that only professionals can use) showing that the wages were in fact reported under a different EIN. (Don't forget to charge him a hundred bucks extra for making the adjustment and preparing the phone call, you smooth talker you.)