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!