Not surprisingly, tax fraud is rampant in the area of education credits and the tuition deduction. According to the Treasury inspector General for Tax Administration (TIGTA) 3.6 million taxpayers claimed over $5.6 billion in potentially
erroneous education tax credits in 2012. Of over 10 million claims for the American Opportunity Tax Credit, 2.5 million were not supported by a Form 1098-T. As a result of this report, the IRS will audit more returns on which education credits are taken. Also of interest in the report is that in 2013 there were 2,300 claims for individuals under the age of 14 and 3,000 over age 80.
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