Skip to content
Thursday, October 29, 2026 · Today’s edition, 6:30 a.m. ETThu, Oct 29 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

IRS starts automatic refunds for more than 50,000 adoption tax credit carryforward filers

Notices generally go out within 30 days of the account adjustment, and the agency says no amended return is needed.

At a glance

  1. The agency expects the refund process to be complete for most eligible taxpayers by the end of the year.
  2. The change follows a Treasury Department clarification of how the Working Families Tax Cuts apply to the adoption tax credit.
  3. The IRS is adjusting affected accounts and issuing any resulting refunds, and it says taxpayers should not need to file an amended return.

More than 50,000 taxpayers who claimed the adoption tax credit carryforward in prior years are receiving automatic refunds from the IRS. The agency expects the refund process to be complete for most eligible taxpayers by the end of the year.

The change follows a Treasury Department clarification of how the Working Families Tax Cuts apply to the adoption tax credit. For tax year 2025 only, carryforwards from prior tax years, 2020 through 2024, can increase the amount of the credit that is refundable, subject to the $5,000 per qualifying child limitation.

“By issuing refunds without requiring eligible families to file an amended return, the IRS is helping reduce the financial burden on those who decided to adopt a child into their family,” IRS Chief Executive Officer Frank J. Bisignano said. He said the administrative change would help families access the tax benefits they are entitled to as quickly and simply as possible.

Notices and adjustments

The IRS is adjusting affected accounts and issuing any resulting refunds, and it says taxpayers should not need to file an amended return. Notices generally go out within 30 days of the adjustment, stating the amount and whether the adjustment produced a refund or was applied toward another tax or non-tax debt. The agency tells taxpayers to review the notice, compare it with their 2025 return and keep it with their tax records.

Adjustments and refunds began in late September and will continue until complete, according to the announcement. Taxpayers who filed their 2025 return before April 15, 2026 will generally receive any applicable adjustment automatically. Those who filed under an extension, or whose accounts have identity theft indicators, freezes, dependency conflicts or other issues, will be reviewed later in 2026, after the return is processed or the account issue is resolved.

Reported by the Tax & estate planning desk from IRS Newsroom. Published . Corrections

Related

Advisors

Treasury and IRS replace retirement plan correction framework and create IRA correction program

Revenue Procedure 2026-34 is effective today; Revenue Procedure 2026-33 begins May 1, 2027.

Advisors

The IRS says the tribal tax credit does not exist

Promoters are selling credits with no basis in federal law, and the clients most likely to be shown the pitch are the ones whose tax bills are large enough to make it credible.

Advisors

The IRS security checklist doubles as a marketing asset

Six controls the IRS wants owned and documented are the evidence file a client’s attorney, accountant or bank eventually asks to see.

Advisors

Grandchild does not qualify as an eligible IRA beneficiary

All three beneficiaries of the 84-year-old's IRA fall under the 10-year rule, and Brenner separates the two Roth five-year clocks.

Advisors

Advisors should read each DST ownership line against the estate plan

Whether a spouse's share avoids probate depends on how the subscription agreement was titled.

Wealth Advisor Dailyfrom Private Wealth Daily

Practice management, recruiting, RIA M&A and the platforms advisors run on. Daily at 6:45 a.m. ET.

Free. Every morning. Unsubscribe from any edition in one click.

From other sections