Here is the update I received from my social worker today:
Update on the Adoption Tax Credit
In the last few weeks, NACAC has gathered information about what’s happening with the adoption tax credit. Almost all of the parents we heard from had not yet received their adoption tax credit, although most have received their regular refund. We have also heard reports that the IRS is reviewing up to 90 percent of the adoption tax credit filings, although we do not know if this number is accurate.
A few families have reported to us that they received their refund with the adoption tax credit. Although this was a very small proportion of the people who responded to us, it is heartening to know that the credits are being paid.
For those who are experiencing delays, there are two different situations:
- The IRS is informing families that the credit is under review and may take 45 to 90 days to process.
- The IRS is requesting documentation of the adoption. In most cases, families sent the correct documentation with their return but it has somehow been separated. Please re-send the documentation, being sure to include your name and social security number on each page.
Unfortunately, the current IRS documentation notice says that everyone has to provide documentation of expenses. We are working closely with the IRS to correct this error. Families who adopt a U.S. child with special needs do not have to document expenses. We are recommending that you send a letter with your documentation explaining that expenses are not required for special needs adoption and that you have included documentation of the adoption and the child’s special needs. If you get another request for expenses, get the name and ID of the employee. If you share it with us, we can try to help the staff member better understand how the credit works.
If you haven’t received your regular refund, we recommend that you contact the IRS and ask why this part of your return has not been processed.
Anyone who feels like they are being treated unfairly or who has a financial hardship can consider contacting their taxpayer advocate.
Jenny ,I HEAR YOU!! :) We only have recieved what we normally would have gotten back. We were told to only send in the court order. So that is what we did. They then sent us a letter stating they didn't need anything and it was being reviewed. Then 2 days later,we got a letter needing a statement of expenses with reciepts. So I resent the court order with what they wanted. It has been 3 weeks and still no word. All we know is the LORD knows we did all we can and hopefully realize we are not lying and send us our money. Everytime I call I get a different story and sometimes a rude person and I don't think they know anything.
ReplyDeleteSo we wait... Gidget
Yup, we only received what we normally would have received, as well. We followed the instructions of what paperwork to include, so I am not sure what the hold up is. The crazy part is that the judge who finalized our adoption was kind enough to squeeze us in before the end of 2010, so that we could get our tax credit, and GO FIGURE! We have not heard from the IRS about this, but I figured this out when I checked my checking account balance and inquired about a mysterious amount of money that was recently deposited. I was shocked to find that it was a tax refund, because only part of the refund was included. After doing some research, I'm guessing that's what is going on with us, as well. I am glad they gave us something in the meantime, though! God is in control, and we will get our money, guys! I think we just got caught up in the middle of a big mess of changes in the ways they are reviewing and processing adoption tax credits, and of course it is making everyone confused about what paperwork is actually considered acceptable. This is our 2nd adoption, and I did notice a difference in what we had to turn in last year vs. this year. Hopefully they'll get this mess straightened out soon!
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