Posted on 05/24/2013 12:08:02 PM PDT by LyinLibs
Add another item to the list of red flags that may get you audited: Adopting a child.
The Internal Revenue Service mishandled tax returns of adoptive families, flagging for further review 90% of those who claimed the adoption tax credit for the 2012 filing season.
And a report by the federal agency’s Taxpayer Advocate Service also found that nearly 70% of adoptive families — more than 35,000 — had at least a partial audit of their tax return.
By contrast, just one percent of all returns are audited.
(Excerpt) Read more at foxnews.com ...
Adoptive Parents. Conservatives. Christian groups. Jewish groups.
Why is the IRS persecuting Adoptive Parents?
Because when parents adopt a child, 2 things are true:
1. The child wasn't aborted.
2. The government "loses control" of the child as the family "gains control" of the child.
No word yet on home schoolers in the IRS scandal. I bet they were targeted as well.
Or maybe there is just a huge amount fraud in this deduction...
Doesn’t the filer have to list the adopted child’s SSN, which can be checked easily without having to audit the return?
I can see where that kind of credit could invite fraud.
The question is, did the IRS find a lot of fraud justifying the 70%.
What would make common sense, is for the IRS to compare against other government records and flag those where no record of an adoption exists.
Wait until the IRS requires information about health insurance. There comes a time that we just have to say, “NO!”
these people are on full tilt. They care about doing the work of their boss, and that’s not us.
Correct.
They want to squelch demand for adoption because if that demand grows abortion will decrease.
Evil is a real force in these people.
I am one of the 70%.
I adopted two children, thereby incurring more expense than if I had only adopted one. I listed only lawyers fees, which I can prove.
Two lawyers involved, one for me and my wife and one for the kids.
The one thing that has REALLY hampered adoption is the Hague Adoption Convention. It deals with international adoption, but making that MUCH more difficult puts pressure on domestic adoption as well.
Something else that is mind boggling. When IRS finds that FRAUD HAS occured on a return by listing children that the taxpayer does not really have:
They will disallow the credit that they were looking at.
In other words- If they are auditing the Child tax credit and find that someone made up a couple of extra kids. they will disallow the Child Tax Credit while at the same time allow the full EITC refund based on the amount of kids claimed. They don’t even look for other credits that would be disallowed if someone claims falsehoods. Only the credit they are checking for.
That was in a TIGTA report. TIGTA puts out reports all the time. Some of them are pretty incredible to read.
Add adoptive parents to the list.
How evil!
I was told that I could not file form 8839 electronically and you are correct, it would have been a simple matter to submit copies of records along with the form but nothing is simple about the IRS.
In our case, we had legal guardianship of the two children for four years prior to the adoption and had already gone through two states' approval process. Illinois and Missouri.
When it comes to the Adoption Tax Credit, fraud would be a black and white issue: if you adopted a child, you easily racked up the minimum expenses to earn the credit; if you did not adopt a child and claimed the deduction, you committed fraud. You can’t claim deductions unless you give the adopted child’s name and social security number, so fraud would be tough to pull off.
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