Adoption papers
Adoptive parents receive tax credits from the IRS, therefore, it’s important that you keep all your adoption-related financial records, legal agreements, and other paperwork for April 15.
“The IRS may ask for any financial records related to the adoption such as invoices, bank statements, or copies of written checks,” says Gonzalez. Note that tax credit is not available if your income exceeds certain thresholds. The thresholds are indexed for inflation.
Prior audit
If you’ve already been audited by the IRS, don’t think you’re just off the hook. Keep the paperwork within reach, because believe it or not, you might be audited again. “I had a client who was audited one year and the audited again,” recalls Anthony E. Parent, Esq., founding partner of Parent & Parent LLP. For that very reason, he advises his clients to keep their tax audit papers forever, because these may not be saved by the IRS on file and you’ll be the only one to blame.
