As the college-admissions scandal winds its way through court, California’s clawing back the money.
The tax money, that is.
A few days ago, the state enacted a new law that scrutinizes all tax deductions these defendants may have taken for charitable donations to any college or university. It applies to every tax year beginning with 2014. It also denies all deductions they took for charitable donations or business expenses that were based on payments they made to entities controlled by the alleged ringleader, Rick Singer.
The law is Assembly Bill 136, and it adds an entirely new section to the Revenue and Taxation Code.
Now, if you’re charged in one of these cases and convicted by guilty plea or trial verdict—and have exhausted all appeals—then California may retroactively deny not only the deductions you took for payments to Singer but also any you may have taken for donations to colleges themselves, if it finds you took a deduction unlawfully.
If that’s you then get ready to amend your returns and, possibly, pay the piper again.
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