Furman and Furman Attorneys LLP

Highly Specialized Criminal Defense, Fire Arms and Self Defense, Personal Injury and Adoption Law Firm
serving clients in Florida and Alabama

Monday, 03 June 2013 11:45

THE IRS AUDITED OUR ADOPTION EXPENSES TWICE

Written by The Blaze

“This feels like the movie Groundhog Day,” I told our CPA when we were notified by the IRS that our family’s adoption tax expenses were being audited for a second time. And there was not anything new that the IRS wanted to look at; just the same audit of the same expenses. All for a second time.

In 2009, my wife and I adopted our daughter Rachel from India, and immediately petitioned the local California court, which then officially declared my wife and me to be Rachel’s adoptive parents.  We gave the local Social Security office all of our paperwork, but it delayed giving our daughter a social security number. A few months later, we filed our 2009 returns anyway, and the IRS audited our adoption expenses. After much shuffling of papers, the IRS notified us that our adoption tax credit would not be allowed for 2009, but could be used for 2010. The IRS even suggested a specific dollar amount.

When we filed our 2010 returns, we claimed the exact amount for the adoption tax credit that the IRS had suggested. The IRS audited our adoption expenses anyway!

This time I re-sent to the IRS not only all of our adoption expenses – the exact same expenses sent in the previous audit – but I added a copy of the IRS letter from the previous audit. The IRS accepted our adoption expenses and allowed the tax credit. No changes were made to our 2010 tax returns.

This saga was all in the back of my mind when I heard that the IRS was harassing various conservative groups that were applying for non-profit status. There were also reports of IRS audits expanding beyond the group itself, auditing the personal and business returns of the person filing for tax-exempt status on behalf of the conservative group. In one case, an application for non-profit status by the group “True The Vote,” resulted in not only hundreds of questions from the IRS, but an over two-year wait on the application. The IRS then audited the personal and business returns of the head of True The Vote, and ATF, OSHA and a state version of the EPA all piled on and inspected the family’s business for good measure.

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