Adoption Tax Credit

The GAO found that the IRS lacks a clear, comprehensive educational outreach plan for the adoption tax credit, leaving many adoptive families unaware of eligibility or confused about requirements. Outreach materials often omit critical details—like rules for special needs adoptions—and aren’t consistently shared with key adoption stakeholders such as state agencies. Without better communication, families risk missing out on benefits or facing costly audits due to inaccurate claims. GAO recommends the IRS develop a strategic plan to deliver consistent, accessible guidance to both families and those who support them.