It is possible that both your sister and her friend could be contacted by the IRS requesting further information about their tax returns. As stated by xmasbaby0, the IRS uses a matching system to be sure that credits and income are claimed correctly and on both tax returns (the one claiming the credit and the one claiming the income).
Since the payments for childcare were made to the friend in cash, both parties will also need records showing the dates and amounts paid. This would be important in the event that the IRS requests the information from either party.
@chanson799
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