How do I report someone that I know is babysitting for money but not claiming the income? is this tax evasion

Question

I have someone that I know is babysitting children, in her home and charging people money. I know that she does not claim this money on her taxes and has done this for over 10 years? There are multiple reasons to report her, I just need the direction and how is the best legal way to do this anonymously.

thanks

Answer 1

I agree with the others. She's not hurting anyone, and if she has the gumption to take in and care for a group of kids on a daily basis, she's probably not getting paid enough as it is.  

Answer 2

How Do You Report Suspected Tax Fraud Activity?

  

If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by completing Form 3949-A. You may fill out Form 3949-A online, print it and mail it to:

Internal Revenue Service

Fresno, CA 93888

If you do not wish to use Form 3949-A, you may send a letter to the address above. Please include the following information, if available:

Name and address of the person you are reporting

The taxpayer identification number (social security number for an individual or employer identification number for a business)

A brief description of the alleged violation, including how you became aware of or obtained the information

The years involved

The estimated dollar amount of any unreported income

Your name, address and daytime telephone number

Although you are not required to identify yourself, it is helpful to do so. Your identity can be kept confidential.

Frequently Asked Questions - 1.13 IRS Procedures: Reporting Fraud

How to Report Abusive Tax Promotions and/or Promoters:

Complete the referral form which documents the information necessary to report an abusive tax avoidance scheme. The form can be mailed or faxed to the IRS address and fax number on the form.

How to Report Abusive CPAs, Attorneys or Enrolled Agents:

Report suspicious actions by tax professionals to the email address of the IRS Office of Professional Responsibility.



  

Answer 3

Try calling a member of your city council or board to ask if there are restrictions on operating such a business and if a license is required. If that individual cannot answer your questions, then ask for the number or agency they recommend you speak with, I'm sure they could provide you that.

Answer 4

Oh my!

Babysitters have a tough enough time getting by, what's your problem?

Mind your own business!  If you want to find out badly enough, I'm sure you will do it, but I am not going to be the one to tell you how to go about it.  

If this person were dealing drugs or hurting anyone, it would be different, but you're just being spiteful.  Yipes.

Here's another thing to consider. You have KNOWN about this for ten years, but are just now reporting it?  You could be charged as well for withholding information.  Best to let sleeping dogs lie and not poke your nose where it doesn't belong.  You want to report her anonymously, that's just a total cop out.  Literally.

What about the little kid down the street with the Lemonade stand.  Are you going to report her too???  lol

Answer 5

See http://www.irs.gov/individuals/article/0...

Answer 6

How about you just mind your own business?

Answer 7

Someday I hope the "mind your own business" people get smart enough to realize that for every dollar in tax a person such as that doesn't pay the honest taxpayers have to make up. If every dollar in tax that should be paid were paid our rates would be much lower for us all.

Answer 8

Believe it or not, but her clients are probably turning her in every year to the IRS.  Virtually all of them will list her as the person they paid for childcare on their tax returns.  The IRS will match up those claims with the income she didn't report and will ask for the tax.

There is a form at irs.gov.  Type tax fraud in the search box.