HOW WE'VE HELPED
Reducing Nanny Tax Costs
One client was upset about the additional cost of nanny taxes and called us.
- We explained two cost-saving options.
- We determined the most valuable option.
- The client signed up for a Flexible Spending Account.
- The client saved $1,950 in taxes.
Resolving Issues with Government Agencies
When preparing nanny taxes on her own, one person filed the wrong forms, although she paid the correct tax amount. The state department of revenue sent her several notices stating the forms had not been filed.
- Since she thought she was in compliance, she ignored the notices.
- When the government threatened to seize her property, she asked us for help.
- We determined what the department of revenue needed and completed the forms for the client.
- With our help, the correct forms were filed.
- While she resolved the problem, she was penalized and charged interest for filing the incorrect form.
Reducing Time Spent on Nanny Taxes
When preparing nanny taxes on his own, one person spent countless hours obtaining forms, reading through the forms, computing withholding amounts, and preparing the forms. After several quarters, he called us for help.
- We reviewed the situation and discovered he was withholding too much tax.
- We corrected the withholding, reduced his nanny taxes and increased the nanny's take home pay.
- We reviewed the registration forms and found he had multiple employer identification numbers.
- We contacted the appropriate department, consolidated the accounts and payments and ensured the account was paid in full.
Relying on Non-Nanny Tax Experts
When having their nanny taxes prepared by a large accounting firm, the firm incorrectly computed federal unemployment tax and failed to prepare the client's state unemployment tax forms. The IRS notified the state unemployment office, and the state unemployment office penalized the family for two years of unpaid taxes. The client came to us for help.
- We reviewed the tax forms, analyzed the withholding and identified the problem.
- We prepared the missing tax forms and made their account current.
- We prepared a letter to the state unemployment office, explaining the problems and requesting a waiver of fines, penalties and interest.
- We worked with the firm to correct the incorrect tax forms.