SECTION 5. APPLICATION

.01 Finality of adoption of foreign-born child .

(1) In general . For purposes of the adoption credit and the exclusion for employer-provided assistance for QAE, the Internal Revenue Service will treat an adoption of a foreign-born child for which the Convention and the IAA do not determine finality as final if:

(a) a competent authority of a foreign-sending country has entered a decree of adoption with respect to the foreign-born child or has authorized the child to leave the foreign-sending country under a guardianship or legal custody arrangement; and

(b) the child receives an IR visa from the Department of State.

(2) Taxable year of finality safe har- bors .

(a) Children who receive an IR2, IR3, or IR4 (simple adoption) visa . The Service will not challenge a taxpayer’s treatment of the adoption of a child who receives an

2005–26 I.R.B. 1375 June 27, 2005