Wealthy parents who allegedly disguised bribe payments as charitable contributions to a non-profit may catch heat from the IRS, tax professors said.
Wealthy parents ensnared in a massive college admissions scheme may have another worry on the horizon: the IRS.
Parents also allegedly paid Singer a purported $25 million to bribe coaches and college administrators to designate the children as athletic recruits, according to the complaint. "If what they were actually doing was not making charitable contributions but paying bribes, then the IRS should be able to question that and disallow the deductions," said Leandra Lederman, director of the tax program at the Indiana University Maurer School of Law.After parents made payments to Key Worldwide Foundation, employees at the organization mailed letters thanking them for the contribution, federal authorities alleged.
"If you give a gift, but there's a quid pro quo that the money must be used to get your child into a certain college or pay some other type of bribe, then that's not what the tax law considers a gift," he said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Grassley would request Trump’s tax returns as check on House Dems'I’m not asking for the tax returns, but if the House of Representatives are going to get them, then I want the Senate Finance Committee to have them,' Sen. Chuck Grassley told reporters
Read more »
5 weird tax deductions the IRS has allowedUnder the right circumstances, even the weirdest expenses may be eligible for a tax break. Here are five situations where the IRS allowed them.
Read more »
Dynastic wealth may be fueling the widening gap between America's rich and poor — here's how the wealthy keep their money in the familyDynastic wealth often begins with a trust. Here's how wealthy families can pass their money down from one generation to the next.
Read more »
Wednesday's $381 million Powerball jackpot comes with a big tax biteWhether the winner goes with the lump sum or an annuity, the IRS will be waiting for a share.
Read more »
Saturday's $414 million Powerball jackpot comes with a big tax biteWhether the winner goes with the lump sum or an annuity, the IRS will be waiting for a share.
Read more »
Here's the tax bill if you hit the $448 million Powerball jackpotIf there's a winner in Wednesday night's drawing, the IRS will get tens of millions of dollars.
Read more »
Owe the IRS? Here's what to do if you can't pay your tax bill1 in 5 US taxpayers could owe the IRS money this year. If you don't have the money to pay, take a deep breath — there are things you can do. - NBCNewsBETTER
Read more »
Following these 4 tips can help shield you from tax return fraudWhile the IRS has had recent success combating tax return fraud, the responsibility to protect personal information begins with taxpayers. How not to become a victim.
Read more »