One percent of all returns are audited by the IRS. Whereas, a whopping 70 percent of adoptive families have their tax return audited. IRS procedures have caused significant economic harm to thousands of families who are selflessly trying to improve the lives of vulnerable children. The Taxpayer Advocate Service revealed the targeting of adoptive families by the IRS in a report last year which received trivial attention from the national media. In 2012, the IRS audited adoptive families at the staggering audit rate of 90 percent of returns claiming the adoption tax credit and went on to fully audit nearly 70 percent. The federal agency wields immense power. Huge document requests with short turnaround times are typically followed by lengthy IRS delays in processing, all with no understanding of the unique documentation challenges of adoption, especially from foreign countries. The targeted audits of adoptive families returned a minuscule yield of 1.5 percent additional revenue—an awfully poor rate of return to excuse harassing families offering a home to unwanted children.
More media attention to increase public awareness of the IRS targeting of adoptive families is encouraged.
Judith Land | Adoption Detective