WASHINGTON, DC — U.S. Senators Bob Casey (D-PA) and Debbie Stabenow (D-MI) sent a letter to IRS Commissioner Douglas Shulman urging him to investigate recent reports of widespread delays and errors in tax refunds to adoptive parents.
“I expanded these tax credits to help loving parents across Pennsylvania and the entire country with the high cost of adoption,” said Senator Casey. “The IRS has an obligation to ensure that they get the tax credit they are entitled to under law without delay.”
“Families who adopt have already invested countless hours and thousands of dollars through the very costly adoption process. They cannot afford to have the IRS erroneously withhold a tax credit promised to them under the law,” Senator Stabenow said. “We need to ensure that families who choose to bring a child into a loving home are treated fairly.”
Senator Casey secured a $1.2 billion expansion of the adoption tax credit to raise the maximum credit from $12,150 to $13,170 and make the credit refundable so that more people can take advantage of the tax credit. As a Member of the Senate Finance Committee, Senator Stabenow was a strong supporter of the expanded tax credit and worked to get it signed into law. This expansion was signed into law as part of the Affordable Care Act. Senator Casey’s provision also extended the credit through 2011. The tax cut compromise passed at the end of 2010 included an additional extension of the credit through 2012.
A copy of the letter is below:
Dear Commissioner Shulman:
We write to you deeply concerned over reports we have received from families encountering difficulties receiving their adoption tax credit for adoptions that occurred in 2010. The Kalamazoo Gazette recently published an article that summarizes such difficulties. We have enclosed a copy of this article.
The adoption tax credit is incredibly important to families who have opened their hearts and their homes to children in need of a “forever home.” Families often pay tens of thousands of dollars over the course of the adoption process, and the adoption tax credit helps them recoup a portion of the costs. As longtime supporters of the adoption tax credit, we are extremely worried that some families may not receive the tax credit to which they are entitled due to errors in processing their tax returns.
We ask that you investigate these reports immediately to ensure that every family who applies for the tax credit correctly receives the tax credit, and that you provide assistance for families whose claims may have been improperly denied. Please inform us of your actions to address these issues no later than April 29, 2011. We look forward to your timely response.
Sincerely,
Senator Bob Casey
Senator Debbie Stabenow
###
