Latest Breaking News

Omaha Steve

(99,635 posts) Tue May 5, 2015, 04:08 PM May 2015

Report: IRS issues $5.6 billion in bogus education credits

Source: AP

By STEPHEN OHLEMACHER

WASHINGTON (AP) — The IRS issued $5.6 billion in potentially bogus education tax credits in a single year — more than a quarter of all education credits claimed by taxpayers, a government watchdog said Tuesday.

A new report by the agency's inspector general says questionable credits were issued to more than 3.6 million taxpayers in 2012. Most of them went to students even though the IRS never received a tuition statement from the school.

Some students attended schools that weren't eligible for federal funding while others didn't take enough classes to qualify for the tax break.

"The IRS still does not have effective processes to identify erroneous claims for education credits," said J. Russell George, Treasury inspector general for tax administration.

FULL story at link.

Read more: http://bigstory.ap.org/article/3a86f06e696b46f1b256869e72f3d891/report-irs-issues-56-billion-bogus-education-credits

3 replies

= new reply since forum marked as read

Highlight:

Report: IRS issues $5.6 billion in bogus education credits (Original Post) Omaha Steve May 2015 OP

"issues" sounds like the wrong word. mpcamb May 2015 #1

Yep, cut an agency 'til it can't function and then scream for privatization groundloop May 2015 #2

With a whittled down staff the agency won't be going after corporations with an army of lawyers mpcamb May 2015 #3

mpcamb

(2,871 posts)

1. "issues" sounds like the wrong word.

Reply to Omaha Steve (Original post)

Tue May 5, 2015, 04:35 PM

May 2015

"Doesn't have the time, capacity or workers to check on" may be more fitting, since they lost 13,300 agents and 18% of their budget.

http://www.cbpp.org/research/federal-tax/irs-funding-cuts-continue-to-compromise-taxpayer-service-and-weaken-enforcement

I like the notion of chasing the worst of the tax cheats.

groundloop

(11,519 posts)

2. Yep, cut an agency 'til it can't function and then scream for privatization

Reply to mpcamb (Reply #1)

Tue May 5, 2015, 04:58 PM

May 2015

I have faith in our Congressional GOPers that this is their plan.

mpcamb

(2,871 posts)

3. With a whittled down staff the agency won't be going after corporations with an army of lawyers

Reply to groundloop (Reply #2)

Tue May 5, 2015, 09:08 PM

May 2015

Or individuals with a billion bucks and a bunch of CPAs on retainer to fight, stall and counter till a there's a capitulation.

Hate to use a used up phrase but it'll be 'low hanging fruit' they'll be seeking.

Reply to this discussion