Report: IRS Issues $5.6 Billion in Bogus Education Credits

The IRS issued $5.6 billion in potentially bogus education tax credits in a single year — more than a quarter of all education credits claimed by taxpayers, a government watchdog said Tuesday.

A new report by the agency's inspector general says questionable credits were issued to more than 3.6 million taxpayers in 2012. Most of them went to students even though the IRS never received a tuition statement from the school.

Some students attended schools that weren't eligible for federal funding while others didn't take enough classes to qualify for the tax break.

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