Tax Relief for Day Care Centers

Child care and daycare centers, both private and parochial, often find themselves in tax difficulties. The Covid-19 crisis has exacerbated this. We are here to help.

We at Larson Financial have helped hundreds of daycare and child care centers navigate their way out of tax
problems with the IRS and State taxing authorities because we understand the unique challenges daycare centers face. Problems that often lead to difficulties in paying taxes:

  1. You need to spend a good deal of money to make sure the building is up to code,
    and that your facility passes all State and Federally mandated guidelines. This can be costly or result in large lump sum (unexpected) expenditures.
  2. You are required by law to have a certain number of employees specific to the number
    of kids you have enrolled. Enrollment can change faster than your ability to change staff size.
  3. Lots of red tape is involved in getting payments from federal or state funding.
    Government programs often change, requiring new certifications or paperwork – causing hiccups in payments.
    Also, government entities (and parents) have a tendency of paying late even when there are no new policies or programs.

The above aspects can dramatically affect cash flow and profit margins. When cash is tight, business owners often face the choice of meeting payroll and rent or making a tax deposit. If you are behind in taxes, we can help. Contact us today to see what your rights and options are.