Prepare a tax return for a client

Reference no: EM133475191

Case: You are a CPA who is paid to prepare a tax return for a client. Your client has a maid who cleans his house twice a week and is paid $3,000 per year.

You realize that your client has not been reporting, withholding, or paying any tax on this household employee's wages. When you raise this issue with your client, they are quick to reply that the employee is a part-time employee and not subject to "nanny tax."
Is your client correct? what would you do in this case?

Reference no: EM133475191

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Prepare a tax return for a client : the employee is a part-time employee and not subject to "nanny tax." Is your client correct? what would you do in this case

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