Business Trips

March 2000

The IRS Audit Guide says, "Trips for the benefit or entertainment of a particular child at the request of a parent would not generally be the responsibility of the child care provider. If this situation occurs, refer to any individual contractual arrangement." In other words, if the contract does not include a statement that the child is being transported as part of the day care services, the auditor may use this as evidence that the trip is personal and not allow the trip as a business expense.

To avoid this problem, providers should put a clause in their contracts that clearly state that transporting children is part of their regular service. Such a clause might read, "Provider may, as part of her child care services under this contract, occasionally transport children to the school, park, library, field trips, and other destinations." Some providers have parents sign permission forms each time a trip is taken. Doing this will serve the same purpose as long as such permission forms include a statement that the trip is provided as part of the child care services.