Honesty is the best policy -- especially when you have no alternative. That would seem to be the conclusion of millions of U.S. taxpayers. In 1988, 8.7 million of them claimed a tax credit for child-care expenses, but in 1989 only 6 million did so. Could it be that in just a year 2.7 million taxpayers stopped paying for child care? Not likely. A better explanation: in the interim a law took effect requiring parents who claimed such tax breaks to identify their day-care providers. Suddenly, if the IRS wanted to check out your claim, it could.
"We are fairly certain...
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