Being audited for childcare credit

[MrsBlalock40]

Hi I was notified that additional information is needed to provide was the childcare credit.  Last year 2021 my mom watches my 3 year old from January to August. And we enrolled in a licensed daycare from September to December. I paid my mom cash every week. Licensed daycare we sent Zelle payments. If I paid cash to my mom, how am I supposed to prove that with any documentation?

[Bsch4477]

Depending on where the child care was done you would have given your mother a W-2 or 2099-NEC to document that expense if you wanted to claim child care credit. And she would have to have reported that income. If she reported that income you could tell the IRS that and that you didn’t know you needed to send her one of those forms. I don’t know if the IRS will accept that excuse but you have no other way of showing that you incurred that expense. 

[MayaD]

When you pay in cash, you need to have accurate records of all transactions in order to ensure that the IRS accepts your deductions.
You also need to provide your mother’s name, address, Social Security number and amount you paid her during the year on form 2441.

[Mike9241]

and your mother needs to report the income.  the IRS dos patch payees on for 2441 to what they report as income.