Know What Should Be On the Documents

Written by Dr. Gwennetta Wright

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Why the Details Matter

Having documents in your client file isn’t enough. What really matters is whether those documents clearly prove the information you’re using to qualify your client for credits. The IRS isn’t looking for a stack of papers—they’re looking for proof. If the details on the document don’t line up with the claim, that paper won’t protect you in an audit.

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What to Look For

When reviewing documents, always check that they include the right names, dates, and details. Here are a few examples:

• Leases: Should include your client’s name, the correct address, and the dates they lived there.

• School Records: Should list the child’s name, the household address, and the school year.

• Medical or Daycare Records: Should show the child’s name, who paid for the service, and the exact dates of care.

If a document is missing key information, it’s incomplete. In the eyes of the IRS, incomplete proof is the same as no proof at all.

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The Audit Test

Before you add any document to a file, ask yourself one simple question:Does this show exactly what I need to prove?

If the answer is no, you don’t stop there, you keep asking your client for more until the document supports the credit with certainty.

Strong documentation is the backbone of due diligence. Don’t settle for “close enough.” Make sure every file in your office contains clear, specific, and verifiable proof. That’s what keeps your business compliant and protects you when the IRS reviews your work.