# US adoption tax credit updates and IRS enforcement > Live situation record from CLSTR: https://clstr.news/situations/us-adoption-tax-credit-updates-and-irs-enforcement > Updated: 2026-10-22T02:55:18.000Z. Sources: 4. Developments: 2. The IRS has updated guidelines for the 2026 tax year, increasing the maximum adoption tax credit to $17,670 per child from the 2025 limit of $17,280. Under these rules, up to $5,120 of the credit per child may be refundable, with phase-outs beginning at a modified adjusted gross income of $265,080. In a related development, the IRS has started issuing automatic refunds to over 50,000 taxpayers to address unused adoption tax credits. Following clarifications to the Working Families Tax Cuts Act, unused balances from 2020 through 2024 can increase the refundable portion of the credit for fiscal year 2025 by up to $5,000 per eligible child. These adjustments are being processed automatically without the need for amended returns. Separately, the Treasury Inspector General for Tax Administration (TIGTA) identified a fraudulent scheme involving “ghost preparers” linked to approximately $179 million in potentially fraudulent tax refunds. These preparers, listed in the IRS “Dirty Dozen,” fail to sign returns or provide valid tax identification numbers. ## Timeline ### 2026-10-22: IRS addresses tax credit refunds and fraudulent preparer schemes The IRS is issuing automatic adoption tax credit refunds to 50,000 taxpayers while TIGTA warns of a $179 million fraud scheme involving “ghost preparers.” 4 sources. https://clstr.news/cluster/irs-addresses-tax-credit-refunds-and-fraudulent-preparer-schemes ### 2026-10-03: IRS announces increased adoption tax credits for 2026 The IRS announced that the maximum adoption tax credit will increase to $17,670 per child for the 2026 tax year, with specific income limits and refundable provisions for eligible taxpayers. 3 sources. https://clstr.news/cluster/irs-announces-increased-adoption-tax-credits-for-2026 --- Cite as: US adoption tax credit updates and IRS enforcement. CLSTR, https://clstr.news/situations/us-adoption-tax-credit-updates-and-irs-enforcement