Parents in College Admissions Scandal May See Steep Tax Fines from IRS
If you made a donation to the Key Worldwide Foundation, it may be time to amend your tax returns. Please contact our office if you would like to discuss your options. All consultations are privileged and confidential.
If the IRS finds the parents claimed deductions on fake charitable contributions to an illegitimate charity, the agency could impose large penalties under tax code Section 6601 and Section 6662, which cover interest payments and penalties for underpayment of taxes.
Under Section 6662, the IRS can add to the tax an amount equal to 20 percent of the portion of the underpayment. Some parents paid as much as $75,000 in order for someone to either take the ACT or SAT on behalf of their children or to correct their children's answers, according to court documents.
Tax fraud was a pillar of the government's case. One family cited in court documents filed tax returns that falsely reported charitable gifts in 2016 of more than $1 million. That sum included a contribution to Key Worldwide Foundation, according to court documents.
Check your Charitable Contributions
If you have deducted charitable contributions on your tax returns, and are not sure if they are legitimate deductions - you need to take action.
Please contact our office to discuss your options.