In an Oct. 16, 2026 news release, the IRS announced that it has begun issuing automatic refunds to more than 50,000 taxpayers who benefited from the adoption tax credit carryforward. The agency expects the refund process for most eligible taxpayers to be complete by the end of 2026. The announcement concerns tax year 2025. The Treasury Department clarified its interpretation of the Working Families Tax Cuts affecting the adoption tax credit. Under that interpretation, adoption tax credit carryforwards from tax years 2020 through 2024 may increase the refundable portion of the adoption tax credit claimed for 2025, subject to the $5,000 limitation per qualifying child. The IRS says affected taxpayers generally do not need to file an amended return. The agency will adjust eligible taxpayers’ accounts and issue any resulting refunds, while notifying taxpayers of the changes. A refund may instead be applied toward another tax or nontax debt. Taxpayers should review each IRS notice, compare it with their 2025 tax return, and retain the notice with their tax records. Refunds and account adjustments began in late September and will continue until the process is complete. Taxpayers who filed their 2025 returns before April 15, 2026, will generally receive any applicable adjustment automatically. Returns filed under an extension, along with accounts involving identity-theft indicators, freezes, dependency conflicts, or other issues, will generally be reviewed later in 2026 after the return is processed or the account issue is resolved. The IRS says notices will generally arrive within 30 days of an account adjustment. Taxpayers can use an IRS Individual Online Account to view tax records, notices, refund status, and payment information. More information is available at https://www.irs.gov/AdoptionCredit. This summary addresses the federal information in the cited release; the source does not discuss state or local tax treatment.