What are acceptable documents from clients who pay property tax on their residence directly to the Tax Collector office because it is not on the 1098?

[obey234919]

Client pays home property tax directly to Taxing office and not through mortgage.

[IRonMaN · Accepted solution]

You could always just ask your clients what they paid.  The IRS doesn’t make us verify every number for them.

[itonewbie]

The answer is already in the question you asked.  How then did you trace this collection to property tax your client owed?  That's exactly what you'll ask your client to gather and retain.

We don't audit clients' documents but, in certain cases, I may ask to review them if I have reason to believe the client may not have sufficient understanding to represent the facts correctly and provide the details we need to prepare an accurate return.

[obey234919]

Hi,

Thanks for responding.

I do have the Tax Statements but would you ask for invoices to support it?

Just would rather not over do things 🤔

[itonewbie]

If you are satisfied that the collection is for the tax bill and the amount paid correlates with that, notwithstanding other fees the collection agency may have charged, that should be all you need although your client will need to retain all the relevant documents to prove the actual payment and linkage to the tax bill.

[IRonMaN]

In Minnesota, all we get is a tax statement.  Out of curiosity, what is the difference between a tax statement and an invoice in your neck of the woods?

[itonewbie]

Trying to get some extra credits to pass our Friday night mind reading class...

I think the OP was referring to the invoice his client got from the collection agency.

[obey234919]

😅I meant the other invoice (receipt).