How do financial aid offices know you’re sending in real tax returns when they ask for verification?
Written By: admin on May 25, 2009
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When a student gets selected for verification, what's to stop someone from submitting a fake tax return? The financial aid offices don't have access to IRS information. Also, if someone is a single parent and earns about ,000 a year will financial aid be drastically reduced if the income was ,000 the previous year?
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Tags: financial aid offices, financial planning, irs, previous year, single parent, tax returnTags: financial aid offices, irs, previous year, single parent, tax return
The US Department of Education audits the schools to make sure the schools are verifying properly and that the money the school is given to help need-based financial aid is being apportioned properly. When a student (and parent if dependent) sign the FAFSA that is an agreement that no fake information will be given knowingly. On the front page of the FAFSA it states: "WARNING: You must fill out this form accurately. The information that you supply can be verified by your college, your state, or by the U.S. Department of Education.
You may be questioned to provide U.S. income tax returns, the worksheets in this booklet and other information. If you can't or don't provide these records to your college, you may not get Federal student aid. If you get Federal student aid based on incorrect information, you will have to pay it back; you may also have to pay fines and fees. If you purposely give fake or misleading information on your application, you may be fined $20,000, sent to prison, or both." You can read the financial fraud act here http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=106_cong_public_laws&docid=f:publ420.106