Lastly, the IRS may contest the “earned income” claimed by the taxpayer if it is not collaborated by a W-2 or 1099. This can eliminate the EIC even if the taxpayer can prove a qualifying child. Many low-income taxpayers have small businesses such as styling hair, cutting grass, or childcare, in which their income is not reported to the IRS by a third party. They will have to provide evidence of their income through bank records, cancelled checks, or other business records. Receipts can be used to substantiate the expenses incurred with the business. Affidavits from customers or suppliers may have to be used if no other records exist.