Samuel Jerome and Richnightder

Samuel Jerome and Richnightder
Our boys in Haiti

Tuesday, August 2, 2011

Adoption tax credit

Our accountant filed our taxes in early March.  In April we received a refund based on our taxes, but withholding the adoption tax credit still due us.  They requested copies of all receipts dealing with our adoption expenses, which we promptly provided.  Then they requested another copy of their IR-3 visa, which we faxed.

We received a letter in May telling us that they would review our file and notify us within 30 days of their decision.  DECISION????  What's to decide?  We spent gobs more on the adoption of each boy than the allowable tax refund, so what's to decide?  Then in June we received a letter asking for ANOTHER copy of their IR-3 visa.  WTF?  Marc finally talked to someone last week regarding why our file hasn't been reviewed yet, and they notified Marc that they needed a copy of the adoption decree and a translated version.

OK, we have those documents, but that's not what is legally required, per their own damn IRS forms.  Nonetheless, we faxed copies of their adoption decrees showing that the adoption of the boys was final in 2008 in Haiti.  Of course, the paperwork trail wasn't finished in Haiti until April of 2009 when we brought the boys home.  Heck, for that matter, the U.S. Embassy in Port-au-Prince took 2 weeks to issue their visas to travel home in April of 2009.  So while the boys were legally ours in Haiti in 2008, we couldn't bring them to the United States, nor claim them on our taxes as they were not U.S. citizens, had no SSN, and were not residing with us.  BUT now, according to the IRS, we should have claimed the boys on our 2008 taxes and will withhold part of our adoption tax credit until we amend our 2008 returns to reflect the addition of the two little boys........EVEN THOUGH THEY WERE STILL IN HAITI AND NOT LEGALLY ENTITLED TO ENTER THE U.S.! 

Because we have to amend our 2008 return, they will reduce our maximum allowable refund to the 2008 limit which is roughly $1000 less than the 2009 allowable refund.  To further complicate this, the IRS will be paying us interest on the 2008 return and on the adoption tax credit from this years return.  I'm not sure how much that will be, but I'm sure it won't be as much as if we were tardy in paying them!

I'm screaming right now out of frustration and anger.  How asinine to think we could have claimed the boys in 2008 when they weren't even a citizen of the United States then, nor could not legally enter our country.  I can't be the only one that finds this mind-numbingly confusing. 

Yeah, so we will get a portion of the refund....or so they say....within 6 weeks and the rest of the refund when we amend our taxes.  Even if we get right on it and get it done ASAP, according to the gal Marc has been dealing with at the IRS it will be approximately 6 months.  Hey IRS.....mama needs money!!!  Send me my damn money and stop changing the rules as you go along.  Kids call rule changers....CHEATERS!  Quit changing the damn rules and send me my money!  Mama needs a trip to the liquor store!

8 comments:

Natalie said...

I'm screaming CHEATERS too!!!!!!! We have been dealing with the same damn thing!!!
First they asked for the adoption decree, again, so that's what we sent. Then we get a letter saying that wasn't enough to say they are special needs, so now we owe THEM money?! I call and she says, "Oh, they weren't sure what to ask for at first and the adoption decrees aren't enough. Do you have your subsidy agreement? That will work."
WTH????
So, we fax our agreement plus a letter from our social worker stating that they are special needs and now we get to wait another two months.
We did our taxes in Februrary!!!! This whole move was dependent on that refund, and here we are, moved with no refund.
The whole thing keeps me up at night. It's a lot of money we were never expecting to get, but now that we are planning on it, it's a BIG DEAL!!!!

Apparently after June 15th we start earning 8% interest. Big flipping deal.
I only know one family who got their money right away this year.

Mike and Jennifer said...

Wow! Sorry you guys are having such a rough time of it:-( We filed our taxes in March. We got a letter back pretty quickly that they needed more info (adoption decree) which we sent in right away. My hubby was on the phone with them every week there after making sure things were moving along and we had our refund by mid June.

Kristi said...

Mama needs liquor and a NEW PURSE!!!

Tifanni said...

The same thing happened to us, but they faxed us a bunch of paperwork and we signed and faxed back, saying we were now claiming the 08 amount on the return. Then they sent the money a few weeks later, so we got our return minus 1000 dollars, but with 240 interest added on. Insane, I know, but it did come so hang in there :)

Denise said...

I thought I'd heard it all, but this is even crazier than the other crazy stories I've heard! Unbelievable!!!

My husband has been on the phone for more hours than I can count with the IRS and every other agency you can think of, and we still don't have any answers! All I know is that, instead of the big fat refund that we need, and to which we were supposedly entitled, they say that we now owe them $5400. All because we haven't proven that our kids have special needs.... This whole thing is SOOOOO old!

Tina Hollenbeck said...

Yep, leave it to the government... Ugh.

Anonymous said...

This sounds like it is happening to more than one family. I wonder who is pulling these strings? Call me paranoid, but this sounds like more than a coincidence! I hope you guys get it straightened out soon!

Sarah said...

Effin' A. We are dealing with something similar. So far I've had 4 "we need 30 days to review" letters. Our newest "you'll hear from us" by date is now Sept. 9th. Effin' A.

What examinations office is your return at? We're in Austin, and good God almighty they are S-L-O-W.