A taxpayer claimed the IRS owed him a credit because a third party allegedly paid his 1999 income tax bill from nonqualified stock option exercises. The Tax Court ruled against him, finding no evidence that any third party actually made the payment. The IRS was allowed to collect the unpaid taxes through levy. For subcontractors, this reinforces that you cannot claim tax credits based on payments that didn't actually happen—documentation of real payments is essential.
Never claim a tax credit or payment unless you have proof the money actually changed hands. The IRS will deny it otherwise.