Summary: Today TaxMama® hears from Tasha with a disturbing problem. “My girlfriend is thinking of filing for an education tax credit even though she is not enrolled in school at the moment. She says the person doing her taxes can issue a 1098T form if and when the IRS was to ask for proof, which will show she was enrolled in school. My concern is this can come back to bite her, hard.” Hi Tasha, I don’t know if this is a common scam. But it IS illegal. The IRS will not be looking for the phony copy of the Form 1098-T that this person prepares. The IRS computers will be cross-referencing for a real one, issued by a school. (Besides, how much do you want to bet this tax person won’t be around to provide the fake 1098-T when your friend needs it?) Your young friend doesn’t need this kind of grief so early in life. Your friend should not be working with a tax professional who behaves this way. In fact,
