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.