IRS Notices to Nanny Employers: Philadelphia Service Center

The IRS' Philadelphia Service Center recently mailed an entire batch of nuisance notices to household employers.

The notice reads:

Request for Your Tax Return
Why Are You Getting This Notice?
Our records show that you have not filed the tax return as shown below:
From 941 Federal Employment Tax...

We have received scores of these notices in our office, and we are confident that many of our clients have received them at their residences also.

Rest assured, as a household employer, you do not file a 941, you have no requirement to file a 941, your obligation is to include Form 1040 Schedule H with your annual income tax filing. We prepare this form for you at the end of every calendar year. So long as you have done this, you are fine.

IRS notices are intimidating. Fortunately, these are easy to handle. Here is how you respond:

1. On Page 3, A. Select the last option, None of the above.


2. Your explanation is: I am a household employer and I report all wages and remit all taxes on Form 1040 Schedule H. I have received this request in error.


3. On Page 4, please sign and complete as indicated.


4. Mail pages 3 and 4 back to the IRS using the envelope provided, insuring that the mailing address show through the window envelope.

That's it! The IRS will do this from a service center on average once every 18 months - no rhyme or reason other than perhaps a query that is not written correctly to exclude household employers?