Hello, a few days to go before the stimulus dollars are mailed out & I have a client with no 2018 or 2019 return filed. Now the question, I wanted to get the community’s thoughts. Married couple, one collects a W2, the other works as a nanny & was not issued either a W2 or 1099.  Based on the work performed (for one specific family), taxpayer should have been issued a W2.  I don’t think the employer intended to issue a W2 or wanted to.  I’m reviewing publication 926 for Household employers & some other materials on the matter & wondering at this point considering the timing, would you?

1. Although late, instruct taxpayer to ask employer for a W2,
2. submit a 4852 (substitute W2) and gross up the net amounts provided by taxpapyer (possibly resulting in a flag for the employer)
3. Schedule C with or without deduction for expenses (client provided mileage to reduce income)

Don’t seem to be any good/better options but hoping to get some ideas.  Thanks! 

Rich