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Add another item to the list of red flags that may get you audited: Adopting a child.The Internal Revenue Service mishandled tax returns of adoptive families, flagging for further review 90 percent of those who claimed the adoption tax credit for the 2012 filing season. And a report by the federal agency’s Taxpayer Advocate Service also found that nearly 70 percent of adoptive families — more than 35,000 — had at least a partial audit of their tax return. By contrast, just one percent of all returns are audited."The IRS's misguided procedures, and its failure to adequately adjust these processes when it learned its approach was seriously flawed, have caused significant economic harm to thousands of families who are selflessly trying to improve the lives of vulnerable children," according to the report.Read more: http://www.foxnews.com/us/2013/05/24/nearly-70-percent-adoption-credit-claims-were-audited-by-irs-report-finds/#ixzz2UEyHyAgq
An even simpler solution: cut out the tax credits and simply simplify the tax code and lower the rates. Heck, increase the personal exemption amount.