IRS Form W-10 walkthrough (Dependent Care Provider's Identification & Certification)

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Purpose of form. You must get the information shown in Part I
from each person or organization that provides care for your child or
other dependent if:
1. You plan to claim a credit for child and dependent care
expenses on Form 1040 or 1040-SR, or
2. You receive benefits under your employer’s dependent care
plan.
If either 1 or 2 above applies, you must show the correct name,
address, and taxpayer identification number (TIN) of each care
provider on Form 2441, Child and Dependent Care Expenses.
You may use Form W-10 or any of the other sources listed under
Due diligence below to get this information from each provider.
Penalty for failure to furnish TIN. TINs are needed to carry out the
Internal Revenue laws of the United States. Section 6109(a)
requires a provider of dependent care services to give to you a
valid TIN, even if the provider isn’t required to file a return. The IRS
uses the TIN to identify the provider and verify the accuracy of the
provider’s return as well as yours.
A care provider who doesn’t give you a correct TIN is subject to a
penalty for each failure unless the failure is due to reasonable cause
and not willful neglect. This penalty doesn’t apply to an organization
described in section 501(c)(3). See Tax-exempt dependent care
provider, later.
If incorrect information is reported. You won’t be allowed the tax
credit or the exclusion for employer-provided dependent care
benefits if:
• You report an incorrect name, address, or TIN of the provider on
your Form 2441; and
• You can’t establish, to the IRS upon its request, that you used
due diligence in trying to get the required information.
Due diligence. You can show due diligence by getting and keeping
in your records any one of the following.
• A Form W-10 properly completed by the provider.
• A copy of the provider’s social security card.
• A recently printed letterhead or printed invoice that shows the
provider’s name, address, and TIN.
• If the provider is your employer’s dependent care plan, a copy of
the statement provided by your employer under the plan.
• If the provider is your household employee and he or she gave
you a properly completed Form W-4, Employee’s Withholding
Certificate, to have income tax withheld, a copy of that Form W-4.
If your care provider doesn’t comply with your request for one of
these items, you must still report certain information on your Form
2441.