Use this checklist to avoid the most common mistakes made in filing child care tax returns, particularly in the area of deductions.
Provider wins case.
IRS Audits Minnesota IRS auditor denies deductions for toys and other items because provider has only canceled checks and not receipts. Case is won on appeal. IRS Audits Minnesota IRS auditor denies deductions for the business use of a piano and camcorder. Provider wins after showing piano books and other records. Provider also wins deduction for a portion of her second phone line used in her business.