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Case Study 1: Reconstructing RecordsRemember our taxpayer, Dana, with a babysitting business? She said she made $14,000 in net profit from her business, and wants to claim the EIC. After careful interviewing, the volunteer has determined the return cannot be completed without record recontruction. The volunteer asked Dana to go home and return with some documentation to support her claims. Based on the taxpayer's materials and additional questions, the tax preparer can determine if Dana should be claiming expenses for the business use of her home. If so, she must be referred to a professional tax preparer. Press the Play Audio button to hear the audio. Click here for an explanation. You may help a taxpayer with simple record reconstruction. Assisting the taxpayer in reconstruction will help teach the taxpayer about recordkeeping. Extensive record reconstruction should be performed by the taxpayer or a paid preparer. If you are not satisfied with the accuracy of the reconstructed records, you have the right to decline to prepare the return. See your Site Coordinator for guidance. 
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