Parents could face tax charges, big fines in admissions scam
BOSTON (AP) — Experts say some wealthy parents charged in a nationwide college admissions cheating scheme could face additional criminal charges or hefty penalties for writing off the bribes on their taxes.
Prosecutors allege consultant Rick Singer funneled millions of dollars from parents through his tax-exempt foundation and then used it to pay coaches and other insiders to designate applicants as athletic recruits or cheat on entrance exams.
Authorities say the parents’ bribes were disguised as “donations” to the Key Worldwide Foundation, which purported to help underprivileged students. Prosecutors say many parents claimed tax deductions for themselves.
Experts say parents who did so could owe huge penalties to the IRS.
People who paid into the foundation but haven’t been charged in the bribery scheme could also face IRS scrutiny.