Adoption Credit

[oceanlovin'ea]

update on my family

My clients got a letter from IRS on Friday. They are asking for proof of residence because the tax return has a post office box and the adoption assistance form has a street address. They are also asking for some kind of documentation because the adoption assistance form has the children's name when they were placed with family and the adoption papers from the court have their names after the adoption which they have all changed their names.

I talked to a lady today. I told the social security numbers and dates of birth with show the connection between the names. But they want court or attorney records.

So my client is going to call his attorney and see what they can do. He found an old bank statement which has both post office box address and street address on it. So that will take care of that issue.

I think they are being really picky, but we have to send the documentation in for now. It is very frustrating because I will fax it this week, then wait 14 days and call to make sure they got the fax. Then wait 30 to 60 days for a response again.

Linda, EA

[outwest]

On the adoption papers I sent

they had the court order changing the names. I highlighted that section on the documents sent in. In fact, following my rule that letters to the IRS must be understandable by a sixth grader, I highlighted the key information on all information I sent along with a cover letter to point them to the right pages.

[oceanlovin'ea]

I just faxed the requested information to IRS. The adoption agency made a listing on letterhead of the children that were adopted...old name, date of birth, social security number and adopted name.

They said they had to hire another person to work in the office to handle all the additional requests they are getting from taxpayers dealing with IRS.

They found an old bank statement that had post office box and street address both on it along with both their names.

Now we wait and see....

Linda, EA

[S T]

Appreciation

I appreciate this post, as I am likely to have a t/p with Adoption in 2011, so your posts are giving me great insight and what to request from the client and alert them in advance of the documents that will be required to submit, and the possibly delays while IRS reviews.

I hope that the pending returns are processed quickly after submitting the add'l documentation.

Sandy

[oceanlovin'ea]

Sandy, what I have learned through this process is that even when you mail in the paper return with the required documentation, the documentation is tossed aside.

You will get a letter requesting the documentation that you have already sent and you will have to fax or mail it to them again. Each time you have to wait 14 days if you faxed the information to see if they received it and then another 30 to 60 days for a reply.

At that time they will most like request something more than what you sent and the 14 day...30 to 60 days starts all over.

They don't have a lot of common sense in the examination department right now apparently.

But hopefully what we are going through will help you to make sure that names match, addresses match and everything is signed and dated. It is also helpful to send a letter with the information explaining in detail what you have sent.

Linda, EA

[Mo Sheets]

Update....Adoption Credit

Received a copy of the correspondence sent to my client by the IRS....no change to the return that we filed. The IRS letter indicated they should expect to receive the balance of their refund in 6 - 8 weeks.

Just wanted to let everyone know. We hard copy filed their return right before the 15th of April. Only 3 1/2 months to get resolution!

Have a great weekend everyone!

Mo

[oceanlovin'ea]

Got Refund!!

My clients with the large adoption credit that had been carried forward finally got their money on Monday.

I am so happy that ordeal is over. But they are adopting one or 2 this year. We know what to expect now.

Linda, EA

[Janey]

Adoption

Adoption Credit FAQ

http://www.irs.gov/individuals/article/0,,id=231663,00.html

My client had to send the documentation 3X but it finally went through. There's was special needs

[DaveO]

I had an adoption credit for a special needs child in 2008. Used some of the credit in 2008 and 2009 with carryover to 2010 which was then refundable. The first IRS notice they got said it was figured wrong and proposed to refund the entire amount of the 2010 credit. They then got a correspondence audit and requested all the details. We provided the info and in about 4 weeks they got approval and the correct refund,