Loan for Adoption exps holding up refund

[AZ-Tax]

I did a search for "adoption" on this message board and briefly read the posts. Briefly read the IRS page at: http://www.irs.gov/individuals/artic...231663,00.html Could not locate anything about adoption loans.

My clients obtained a loan from an adoption agency to help pay the fees. The IRS in their recent letter made an offer to my clients short changing about $3K of credits. The IRS said in the letter if my client provides proof my clients loan has been paid off, they will add this to my clients related adopiton exps. So I called the IRS dialing the # on the IRS reply and we both went over the letter. I told her the exps we faxed you the IRS over 2 - 3 months ago in part are exps paid for by the loan and yes, as soon as my clients receive their full refund my clients are entitled to, my clients can pay off their loan and be more then happy to fax the IRS proof the loan was paid off (thinking in my mind NOT). The IRS lady actually started to agree with me that this was a rather strange request by the IRS. She then emailed the examiner to call me in the next couple days. I asked her what the chances of that happening and she replied they are suppose to.

Anyone had experience with this before?

[veritas]

How did they know

I did a search for "adoption" on this message board and briefly read the posts. Briefly read the IRS page at: http://www.irs.gov/individuals/artic...231663,00.html Could not locate anything about adoption loans.

My clients obtained a loan from an adoption agency to help pay the fees. The IRS in their recent letter made an offer to my clients short changing about $3K of credits. The IRS said in the letter if my client provides proof my clients loan has been paid off, they will add this to my clients related adopiton exps. So I called the IRS dialing the # on the IRS reply and we both went over the letter. I told her the exps we faxed you the IRS over 2 - 3 months ago in part are exps paid for by the loan and yes, as soon as my clients receive their full refund my clients are entitled to, my clients can pay off their loan and be more then happy to fax the IRS proof the loan was paid off (thinking in my mind NOT). The IRS lady actually started to agree with me that this was a rather strange request by the IRS. She then emailed the examiner to call me in the next couple days. I asked her what the chances of that happening and she replied they are suppose to.

Anyone had experience with this before?

about the loan to begin with?

[AZ-Tax]

The IRS said TP's income does not support exps

about the loan to begin with?

In their letter about 2-3 months ago the IRS either in a letter and/or told me "their (my clietns) income does not seem to support all the submitted adoption related exps" for which I replied my client had to get a loan from an adoption agency. Then the IRS wanted to see proof of the loan which I faxed in but little did I know they were going to use it aganist my clients.

[DaveO]

Is it a loan against the credit? If they are legally obligated to repay the loan in the absense of the credit I would ask "What difference does it make?"

[ChEAr$]

Perchance did some of the adoption related expenses claimed include loan interest, carrying charges, fees , etc?

If so, why should the goverment reimburse for these?

[AZ-Tax]

No

Perchance did some of the adoption related expenses claimed include loan interest, carrying charges, fees , etc? If so, why should the goverment reimburse for these?

NO, none of the adoption exps inlcude any loan interest, carrying charges, app fee and/or any other fee related to my clients loan. Just this just plain ridiculous.