Evidence

Taxpayer (TP) pretty much ignored their books and financial statements all year and now is fussing that they owe tax. TP now suddenly claims they have forgotten fees. When asked to provide documentation to support these forgotten expenses! TP provides a generic report (no company name, no vendor name just expenses, credits, etc). Would you accept this as sufficient evidence to include on their return

It's your due diligence duty. If your gut tells you it's fraudulent, then don't prepare the return.

Yep. Smell test. You don't need docs, but you need to believe.

The evidence I require is based on each individual tax client. One client uses Quicken to record everything and attaches receipts. If receipts are missing, I ignore it, she probably misfiled it. She's very detailed, so if she sends me an email detailing expenses, I will accept it. She provided a spreadsheet of her donation mileage. I accept it. Other clients, I don't trust.

Excellent.

I’m at the point now of show me proof or POOF!

(e) Verification of information furnished by taxpayer or other party -

(1) In general. For purposes of sections 6694(a) and (b) (including demonstrating that a position complied with relevant standards under section 6694(a) and demonstrating reasonable cause and good faith under § 1.6694-2(e)), the tax return preparer generally may rely in good faith without verification upon information furnished by the taxpayer. A tax return preparer also may rely in good faith and without verification upon information and advice furnished by another advisor, another tax return preparer or other party (including another advisor or tax return preparer at the tax return preparer's firm). The tax return preparer is not required to audit, examine or review books and records, business operations, documents, or other evidence to verify independently information provided by the taxpayer, advisor, other tax return preparer, or other party. The tax return preparer, however, may not ignore the implications of information furnished to the tax return preparer or actually known by the tax return preparer. The tax return preparer must make reasonable inquiries if the information as furnished appears to be incorrect or incomplete. Additionally, some provisions of the Code or regulations require that specific facts and circumstances exist (for example, that the taxpayer maintain specific documents) before a deduction or credit may be claimed. The tax return preparer must make appropriate inquiries to determine the existence of facts and circumstances required by a Code section or regulation as a condition of the claiming of a deduction or credit.