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A failing tax grade on education credits

by on
in Small Business Tax,Small Business Tax Deduction Strategies

In a new report, the Treasury Inspector General for Tax Administration (TIGTA) has identified 2.1 million taxpayers who received $3.2 billion in education credits that appear to be erroneous. (TIGTA 2011-41-083, 9/16/11)

At least 1.1 million of the tax returns, or 52%, were submitted by a paid tax preparer. Significantly, 1.7 million taxpayers received $2.6 billion in education credits without any supporting evidence showing that the student even attended school.

The IRS plans to increase scrutiny in 2012.

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