Real story: Fixing an IRS error

Couple looking over tax forms

Updated

 

"I've never had any problem that couldn't be solved with an email, or maybe once or twice, a phone call."
~ Matt A. - Chicago, IL

 

The Challenge

Matt and his family have been HomePay clients for several years and always paid their nannies legally. One year, unfortunately the IRS didn’t match up the federal tax payments we were making on the family’s behalf with their personal income tax return. As a result, Matt received a notice from the IRS stating his family owed several thousand dollars.

 

Our Solution

Because we keep detailed records of all our clients’ tax payments, a HomePay consultant was quickly able to work with Matt to provide proof of the tax payments we had made. This information was then sent to the IRS with instructions that the error was on their end – not on the family’s.

 

The Results

The IRS acknowledged the error and credited Matt’s family with the tax payments we had made for them. Because of how busy Matt and his wife are with their own jobs and raising their children, they appreciated not having to devote additional time to get involved personally with the IRS to resolve this issue. Since then, they have never had another notice from the IRS related to the household employment taxes.

 

First things first—have you hired a caregiver?

If you're seeking a caregiver or a care job, visit Care.com

What type of caregiver have you hired?

Have you already made any payments to your caregiver?

Yes
No

If you've made payments, we'll help you track them and we'll provide your employee with pay stubs.

We'll help calculate the taxes in your state.

Enter your ZIP

What type of caregiver are you planning to hire?

When do you expect to hire someone?

How many hours do you estimate your caregiver will work?

0 - 15 hours / week
15 - 40 hours / week
40+ hours / week
24 / 7

We'll help calculate the taxes in your state.

Enter your ZIP

Great! Now set up your log in to get things going.

By clicking "Continue", you agree to our Terms of Use and Privacy Policy.