Summer Day Camp Eligible for Child Care Tax Credit

[Burke]

Per Pub 503 a summer day camp is eligible for the CCTC "even if it may offer special activities such as computers or soccer."  TP put child in such a camp, but provider refuses to give EIN as "CPA told her since it is not an all-day camp, they did not have to provide number, as it doesn't qualify for the credit."  Really???   (It's half-day.)  Never heard that before and I can't find anything that supports that.  Opinions? 

 

[Donnarae]

I can usually find the tax ID number on their website, but most camps give it to me. 
It’s ridiculous that they won’t supply it. 

[Burke]

Provider does have a website, and registration forms/receipts, etc.  No FEIN on anything.  Tried state records, and found State ID number, (this business is incorporated) but FEIN not listed.  As a last resort, will mail W-10 and will send copy of the Tax Code reg (if I can find it.)  Thinking about highlighting the part of W-10 instructions about providing EIN and penalties.....

 

[Yardley CPA]

Why wouldn't they supply it?  What exactly is the down side of them supplying it to a paying customer?

[jklcpa]

11 hours ago, Burke said:

Per Pub 503 a summer day camp is eligible for the CCTC "even if it may offer special activities such as computers or soccer." 

I agree with you and Yardley that there is no downside to this provider supplying the identifying number, and it is up to the taxpayer to determine if he/she meets all of the other rules for claiming the credit.

You are correct that pub 503 specifically mentions that soccer camp IS an allowable expense, but then goes on in the examples to show that camps including recreational activities are allowed IF the taxpayer and dependent otherwise meet all the other tests of the credit including the dependency and work-related tests by using the phrase "may be eligible" not "is eligible." 

If it helps, dependent care credit is covered in IRC sec 21, and the definition of employment-related expenses is at sec 21(b)(2), and then the special rules at sec 21(e)(9) and (10) covers identifying information of the service provider, but it doesn't specifically mention the W-10 but only that the taxpayer must show due diligence in his/her attempt to include all of the required information on the return pertaining to the service provider.

https://www.law.cornell.edu/uscode/text/26/21

I think my software would not allow e-filing if the EIN or other required information is missing but would have to test it to be sure.  YMMV. 

[Lee B]

6 hours ago, Yardley CPA said:

Why wouldn't they supply it?  What exactly is the down side of them supplying it to a paying customer?

They may be paranoid about other people having access to their EIN?

[Yardley CPA]

17 hours ago, cbslee said:

They may be paranoid about other people having access to their EIN?

They're a summer camp with clients who more than likely ask for their EIN.  What would the paranoia be over exactly?