Thy name is Adoption Audit....

[2ndTimeAround]

Oy! We adopted Daisy in China on Mother's Day almost two years ago! I wish, I wish, I wish, that we had filed our taxes for the credit with her incorrect name and corrected it later... but we didn't ... so we only now filed (about a month ago) for our tax credit and rcvd' a very brief letter from the IRS that basically they are looking for receipts n' such...

Has anyone had this experience? I'm trying to figure out what to pull together.

I'm almost certain someone had a hot line phone number on this forum for such a thing....Boy, I'd sure appreciate.

Ohhhhhmmmmm. C

[gaylors79]

I'm waiting on my second letter...so far we've gotten the "your file is being reviewed and you will get another letter in 30 days". Well, it's almost 30 days...so if I hear anything I'll let you know. If you're with Holt and email Ellen, she can forward your email and they will send you a summary of your expenses paid, including check numbers and stuff. I have mine, and all my copies of checks...just waiting for the second letter!

I think we need to rename this thread "misery loves company when it comes to taxes"

Sara

[aophotography]

Yes, give Holt a call and they will email you a statement of what you paid to Holt. Then, you should make copies of your cancelled checks and cross reference them. Write up a cover letter listing all exhibits. For instance, "exhibit A" could be your homestudy statement attached to the cancelled check. You do not need to account for every cent. As long as you account for expenses paid that amount to what you are claiming for the credit, you will be fine.

We were audited last year for Bryce's adoption, and we did not send proof of all expenses such as FedEx, postage, etc. Our homestudy fee, dossier fee, and Program Fee, and post-placement fees addded up to a bit more than the credit so we only sent proof of those expenses paid and it was enough.

From when we filed to when we finally received our adoption refund was a bit over 6 months. We did, however, receive the non-adoption portion of our tax refund within two weeks of filing.

[2ndTimeAround]

Wow! Very, very helpful! I kept pretty excellent records of all-things-dossier, starting from 2006, when were originally logged in for standard match, straight through updating for a Hague adoption (including printing and saving all certificates from the on-line class I had to complete) and straight through to our COP match, but when it came to the expenses [I guess] I thought husband would have all that paper work. Okay, do I hear laughing "out there!"

Uhm, can't say that happened, so it's comforting to know between what I can pull together and what Holt will have on record, that we will be covered and this will not be another endless paper chase!

I'm not thrilled about the six month wait but in-the-end, most will go towards our girls college funds so all is good!

Thanks a million for this info!

[aophotography]

Your wait may not be as long, since this is the second year and hopefully the IRS will have things figured out a little more this time. Also, in our case there was the additional snafu of the IRS basing things off of our original return rather than an amended one.

[gaylors79]

And make sure that you account for things like employer adoption assistance. DH's employer is very generous, and we got some $$ from them after finalization (ie after we got home) which helped offset the travel costs on our credit card. BUT when the IRS asks for more info, they will want us to show a copy of the form we sent to his HR which stated what fees, etc we were asking for assistance with. So if you or your DH's employer also provides that kind of assistance you'll need to make sure you have those ducks in a row so you can prove you aren't double dipping.

Sara

[Lillie]

We did basically what Andrea recommended. The summary of expenses we got from Holt covered 3 of the biggest expenses (e.g. home study, post placement, country fee). We had a cancelled check for the USCIS amounts for biometrics and I600. We used a copy of the bill & receipt for the airfare and for the lodging. On the advice of our CPA, we included all the big expenses (e.g. home study, post placement, country fee, USCIS fees, airfare, lodging, etc). He did advise us to include all of the big expenses even if they exceeded the total amount of the credit so that the bulk of the adoption costs were represented. We did not include the smallest of the items such as postage, FedEx.

[kc31]

Thanks! Very helpful!

[elfkin]

Yes, give Holt a call and they will email you a statement of what you paid to Holt. Then, you should make copies of your cancelled checks and cross reference them. Write up a cover letter listing all exhibits. For instance, "exhibit A" could be your homestudy statement attached to the cancelled check. You do not need to account for every cent. As long as you account for expenses paid that amount to what you are claiming for the credit, you will be fine.

We were audited last year for Bryce's adoption, and we did not send proof of all expenses such as FedEx, postage, etc. Our homestudy fee, dossier fee, and Program Fee, and post-placement fees addded up to a bit more than the credit so we only sent proof of those expenses paid and it was enough.

From when we filed to when we finally received our adoption refund was a bit over 6 months. We did, however, receive the non-adoption portion of our tax refund within two weeks of filing.

Agreed.

[gaylors79]

Anyone who has turned in the request for more info heard back yet? Ours was received May 3 and I'm dying to know if we're getting the credit...or another letter.

Sara

[rebeccajohn]

We're still waiting after sending in the first request for add'l info. We haven't check the status online recently but maybe this week I'll be brave enough to look at the status..

Rebecca
dh
dd
ds home july 2006
dd home sept 2011

in prayer to see if our family is complete...

[jstaggs]

We had to send in more documentation too. Waiting.

[2ndTimeAround]

I originally posted this topic and have followed up several times via email and phone with Holt and have nor rcvd' our expense copies yet. I love Holt and just have to think something got caught in a pile. I'm hoping in combo with the big expenses they can reflect and with hopefully some that we can reflect, that we've proven we adopted our second daughter from China... two years ago!

That tax credit will come in very handy.

Oy!

[nebraskamom]

Yes, we had to send in our expense receipts also. Sent a week or so ago--have heard nothing.....(this was for our adoption from India). We did get money back that was not related to the adoption tax credit.

[rebeccajohn]

Our refund is appearing in our acct today after we sent our add'l info in about a month ago.

One more step done in the latest adoption... On to the state readoption...

Rebecca
dh
dd
ds home July 2007
dd home Sept 2011