I have submitted my credit card statement and the dentist bill that was paid. Is this proof of payment?

Question

IRS is auditing my return. They seem to reject this one medical payment. Are they correct? I know that a CC statement is not enough, but the bill had the dental procedure on it. All other bills paid with checks were allowed even without a dentist's statement. How do I tell the IRS auditor that he goofed?

Answer 1

As long as the dentist's bill was charged to your credit card during the tax year in question, you should have plenty of documentation.  Of course, the work needs to have been done in that year or a prior year.  Prepaid doesn't count.

If all this is correct, you may need to request a supervisor be consulted.  That may be enough without having to resort to an appeal.  

You are right.  Stick to your guns.  Not all IRS auditors are competent.

Answer 2

Make sure that any bill you have has actual ADA codes in it and be sure that the bill is itemized and shows the dental office's tax ID number.  Also, be sure that the service was actually a "covered" deduction.

Answer 3

The IRS wants receipts. Credit card bills are not sufficient receipts. The credit receipt at time of procedure should be fine. It must be in the proper tax year also.

Answer 4

If the credit card payment was for procedures done during the tax year, you are OK.  You need to document that from the dentist.

You cannot deduct prepaid medical expenses.

Hang in there and keep appealing if you are correct.  Eventually you will prevail if you are entitled to the deduction.