Day Care Provider

[mcb39]

I had something different yesterday. Client came in with her paper from her day-care provider with the amount filled in. However, provider had a note saying that her preparer had to call her to get the SS#. I did call her and she asked me two different questions to identify myself before she would give me her ID# and/or address. People are so afraid of identity theft. I ended up commending her on her caution (though I thought it was a little over the top). She ended up asking me a few tax questions, so, who knows. This could or could not lead to a new client.

[Pacun]

I am pretty sure you offered her to get a FEIN.

[kcjenkins]

If you did not suggest she get an EIN, so that she does not need to give out her SSN, you should call her back and do that. Anyone who operates a daycare should have an EIN, especially if they operate out of their home.

[mcb39]

If you did not suggest she get an EIN, so that she does not need to give out her SSN, you should call her back and do that. Anyone who operates a daycare should have an EIN, especially if they operate out of their home.

But, I am not her accountant or tax preparer. I did suggest the EIN, but she is having her taxes prepared somewhere and the questions she asked me were just wanting to check to see if I gave her the same answers as her preparer did. I really don't think that I want her as a client under those circumstances as it appears she doesn't really trust anyone.

[kcjenkins]

You are right, that sort of client is often more trouble than they are worth, often they do not follow your advice, or only the parts they like, then blame you when that causes them problems. If you do take on such a client, you want to always start with a high quote on your fees, you can always come down later if they turn out not to be the problem they appeared to be, but it's harder to raise them if they are.

[Chowdahead]

I've had 2 arguments with providers recently over this issue. They refuse to give my clients their SSN, and they don't have EINs. They insist on giving me their state license number, and I tell them that's not what I need.

I had one client who lost $1,100 of her refund because the provider refused to provide either an EIN or SSN. I told her, "time to get a new daycare".

[jainen]

>>I had one client who lost $1,100 of her refund because the provider refused to provide either an EIN or SSN<<

In my opinion, you owe your client a free amended return. The instructions to Form 2441 say, "Due Diligence... attach a statement to your return explaining that the provider did not give you the information you requested."