IRS Audited 69% of Adoptive Families While Defending Planned Parenthood

National   |   Steven Ertelt   |   May 22, 2013   |   5:06PM   |   Washington, DC

The Internal Revenue Service targeted a pro-life Iowa group that acts in part as a watchdog over the Planned Parenthood abortion business.

It refused to grant nonprofit tax status to the Coalition for Life of Iowa unless it agreed to limit its “picketing” and “protesting” of Planned Parenthood.

While defending the nation’s biggest abortion business, the IRS audited 69 percent of families claiming the adoption tax credit. As National Review reports:

In 2012, the IRS requested additional information from 90 percent of returns claiming the adoption tax credit and went on to actually audit 69 percent. More details from the Taxpayer Advocate Service:

During the 2012 filing season, 90 percent of returns claiming the refundable adoption credit were subject to additional review to determine if an examination was necessary. The most common reasons were income and a lack of documentation.

■ Sixty-nine percent of all adoption credit claims during the 2012 filing season were selected for audit.

■ Of the completed adoption tax credit audits, over 55 percent ended with no change in the tax owed or refund due in fiscal year 2012. The median refund amount involved in these audits is over $15,000 and the median adjusted gross income (AGI) of the taxpayers involved is about 64,000. The average adoption credit correspondence audit currently takes 126 days, causing a lengthy delay for taxpayers waiting for refunds.

While many returns had missing or incomplete information (more on that in a moment), what was the outcome of this massive audit campaign? Not much:

Despite Congress’ express intent to target the credit to low and middle income families, the IRS created income-based rules that were responsible for over one-third of all additional reviews in FY2012.

■ Of the $668.1 million in adoption credit claims in tax year (TY) 2011 as a result of adoption credit audits, the IRS only disallowed $11 million — or one and one-half percent — in adoption credit claims. However, the IRS has also had to pay out $2.1 million in interest in TY 2011 to taxpayers whose refunds were held past the 45-day period allowed by law.

So Congress implemented a tax credit to facilitate adoption – a process that is so extraordinarily expensive that it is out of reach for many middle-class families — and the IRS responded by implementing an audit campaign that delayed much-needed tax refunds to the very families that needed them the most. Oh, and the return on its investment in this harassment? Slightly more than 1 percent.

The Internal Revenue Service conducted an internal probe over its targeting of pro-life and conservative groups that ended well before the 2012 presidential election, but reports show the results were hidden.

The agency hasn’t officially reprimanded a single staffer over it.

With the scandal concerning the IRS and its targeting of pro-life and conservative groups growing, national conservative activists held nationwide rallies today at IRS offices across the country.

Reports indicate President Barack Obama’s top attorney knew in April that the Internal Revenue Service was targeting pro-life and conservative groups. The reports show Obama’s top lawyer was notified in April that the Treasury Department’s inspector general had finished an audit of the IRS over the allegations.

The IRS will soon face more than controversy and Congressional hearings over its discrimination of pro-life and conservative groups. The federal agency will soon find itself in court.

The news comes as a report shows James Dobson, the pro-life family advocate, disclosed that he was a victim of IRS discrimination because he spoke out against pro-abortion President Barack Obama.

Obama addressed the massive IRS scandal and promised it would never happen again.

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“I’ll do everything in my power to make sure this never happens again,” he promised.

The chairman of the House Oversight and Government Reform Committee announced he will hold a hearing on the IRS scandal this week. The federal agency has targeted pro-life groups as well as conservative and religious organizations.

In one case LifeNews has profiled, a pro-life group was told it had to promote abortion. A top pro-life legal group also informed LifeNews that cases it handled support mounting accusations that demonstrate the agency’s abuse of pro-life organizations.