Wednesday, March 21, 2012
What Excuses Have Parents Given You for Not Wanting to Pay Taxes?
It is estimated that 80% to 90% of household employers don't pay taxes on their household employees.
Nannygate is the popular term coined to describe these household employers who don't pay taxes. Nannygate is an epidemic in America.
There is a long list of reasons parents should pay the nannies they hire legally. Not paying taxes for household employees is tax evasion. Parents that are not tax compliant are opening themselves to potential civil and criminal penalties and potential liability for taxes, penalty taxes, and additional charges. Parents that work as accountants, lawyers, or doctors can lose their licenses to practice their profession if they don't pay taxes for their household employees.
Parents are also are short-changing themselves if they could qualify for a medical expense deduction or child care credit if they cannot prove their deduction before IRS without admitting their tax evasion.
Knowing all of this, why is Nannygate still an epidemic in America? Why do you think most parents don't want to pay their household employees' taxes? Have parents given you the run-around about paying taxes? What excuses have parents given you in the past?