New IRS Enemies: Adoptive Parents!
By Gina Loudon WND.com
It is no secret that the IRS watches certain groups of taxpayers with increased scrutiny. For instance, millionaires have about a one-in-eight chance of being audited.
There is another segment of American taxpayers who face approximately six times those odds of a visit from the IRS: adoptive parents.
Adoptions are expensive. The average cost of adoption is $30,000. In response to those costs, and the millions of children in the U.S. and abroad waiting to be adopted, Congress passed Adoption Tax Credits. States then began to match those credits.
New information from the Taxpayer Advocate Service says that 90 percent of those who filed for the adoption tax credits in 2012 were asked for “additional information.”
And the study says 69 percent of the families who adopted were ultimately audited by the IRS. In comparison, millionaires have 12 percent chance of being audited. On average, $117,000 more in taxes is collected per audited millionaire. The audits of adoptive families bring in substantially smaller yield of 1.5 percent additional revenue.
In an exclusive WND interview with Michael Reagan, author of “Twice Adopted,” he asked the question, “Are they doing this because they are concerned about fraud?”
In his column in National Review Online, an adoptive father who was audited in 2012, David French, seems to answer Reagan’s first question, “If the IRS is concerned about fraud, it can audit random samples, not the vast majority of adoptive families claiming the credit.”
http://www.wnd.com/2013/05/new-class-of-people-identified-as-irs-enemies/?cat_orig=faith
Source: http://ppsimmons.blogspot.com/2013/05/new-irs-enemies-adoptive-parents.html
