Most of what you've read online about IRS problems is wrong, or at least misleading. I'm Darrin Mish. I practice tax law in Tampa and I've been doing this for 32 years. Here's what's actually true.
The IRS has started sending automatic refunds to more than 50,000 families who claimed the adoption tax credit, but if you owe back taxes, the IRS can keep that money. Tax Attorney Darrin Mish walks through who gets the refunds, why you should get your IP PIN before mid-November, a new IRS fix for IRA mistakes, and proposed rules for the premium tax credit.
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Transcript
If you adopted a child, the IRS may be sending you money right now. You don’t have to ask for it, but if you owe the IRS, you may never see a dime of it.
Good morning. This is IRS Monday, and I’m Tax Attorney Darrin Mish. Four headlines this week and what each one means for you.
Automatic adoption credit refunds
On October 16, the IRS said it has started sending automatic refunds to more than 50,000 families. These are families who claimed the adoption tax credit and carried part of it forward from earlier years. For 2025 only, more of that credit can come back to you as cash, up to $5,000 per child. No amended return needed. The IRS adjusts your account and mails you a notice.
What this means for you. Say you adopted in 2022, and part of your credit was stuck waiting for future tax bills. Now some of it may turn into a refund. But here’s the catch. If you owe back taxes, the IRS can apply that refund to your old balance instead.
What to do? Watch your mail. When the notice comes, compare it to your 2025 return and keep it with your records.
Get your IP PIN before mid-November
On October 22, the IRS urged everyone to get an Identity Protection PIN, an IP PIN. That’s a six-digit number. It stops anyone else from filing a tax return with your Social Security number. The timing matters. The online tool goes down for maintenance in mid-November. It generally comes back in mid-January.
What this means for you? Picture this. You go to file in February, and your return gets rejected. Somebody already filed in your name and took your refund. Now you’re stuck waiting months.
What to do? Go to irs.gov and request your PIN before mid-November, and never share it with anyone except the person preparing your return. Remember, the IRS will not call, text, or email you asking for it.
A new IRS fix for IRA mistakes
Also on October 22, the IRS created a new program to fix certain mistakes in IRAs. It’s called ICRS. It covers honest mistakes made by the bank or broker holding your IRA. It also gives you a way to ask for more time on a rollover.
What’s a rollover? You take money out of one of your retirement accounts and put it in the other. Normally, you have 60 days. Miss that, and the money can be taxed, plus a possible penalty.
What this means for you. Say you moved your IRA and the broker sat on the check. Day 60 came and went. Today, asking for relief can be slow and expensive. This new system is meant to make it simpler. The IRS says it will phase it in over 2027 and 2028.
What to do. If you ever move retirement money, ask for a direct transfer, account to account. Then no check sits in your hands.
Proposed premium tax credit rules
On October 14, Treasury and the IRS proposed new rules for the premium tax credit. That’s the credit that helps pay for health insurance that you buy on the marketplace, also known as healthcare.gov. The rules add tighter eligibility checks under the Working Families Tax Cuts Act. These are proposed rules. They’re not final yet.
What this means for you. If you get help with your premium, expect more questions about your income and eligibility. If your income ends up higher than you told the marketplace, you may have to pay some of that credit back when you file.
What to do. If your income has changed this year, update your marketplace account now, not in April.
This week’s takeaway
Two things to remember. One, the IRS gives money back, but if you owe, it can keep that money to pay your old balance. Number two, get your IP PIN before mid-November. Five minutes now can save you months of headaches.
If you owe the IRS and you’re worried about losing a refund, call my office at 813-229-7100. We’ll walk you through your options.
This is general information, not legal advice. I’m Darrin Mish. See you next Monday.