Hello all, I hope this is the appropriate place to ask this question. For three years we employed an undocumented young women as our nanny. Recently, she applied for DREAM Act and received a letter that she needs to show evidence of continuous residence for the three-year period that we employed her. What she need are employment records - including pay stubs, W-2s, etc - however as she was undocumented at the time, we simply paid her cash and for her insurance. She wants us to write a letter stating that we employed her; I have 2 questions regarding this:
1. Would a letter from us without any supporting documents actually count as employment records?
2. Would we be reported to the IRS because we did not pay taxes on her? That is, will the Department of Homeland Security (who we would send this letter to) talk to other government institutions regarding this application, or do they not care and/or have the resources to do that?
We would like to help this woman in the most effective way possible. Thanks for any/all advice.