Adoption Tax Credit Update:

Adoption tax credit update

http://www.davethomasfoundation.org/Adoption-Facts/Adoption-tax-credit-update


It has been brought to our attention by families who have filed for the Federal Adoption Tax Credit that they are receiving letters from the IRS requesting additional documentation of qualified adoption expenses. Unfortunately, the current IRS documentation notice says that everyone has to provide documentation of expenses.

Families who adopt a U.S. child with special needs do not have to document expenses (in law since 2003).

The North American Council on Adoptable Children (NACAC) have staff who are working closely with the IRS to correct this error. They 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 (the adoption decree and adoption assistance agreement). If you get another request for expenses, get the name and ID of the employee. NACAC is devoting special time and attention to this issue. Please contact NACAC at taxcredit@nacac.org to report any unusual problems you are having or if you need help with a specific issue.

Help us get the word out, download & distribute VFA’s “Did You Know?” post-card at: http://voice-for-adoption.org/sites/default/files/VFA_AdoptionTaxCredit_postcard_2010.pdf