/Democrat Ron Wyden wants to strip tax benefits for college donations in wake of bribery scandal

Democrat Ron Wyden wants to strip tax benefits for college donations in wake of bribery scandal

The alleged college admissions cheating scam unveiled earlier this week has already triggered at least one call to change the law regarding some donations.

IRS allows people to claim tax deductions when donating to nonprofit colleges and universities.

Wealthy parents charged in Tuesday’s indictment allegedly made bribe payments under the guise of charitable donations by wiring money to William “Rick” Singer’s nonprofit the Key Worldwide Foundation. Federal prosecutors allege parents filed personal tax returns that reported the payments as donations to KWF, which would allow them to receive tax deductions.

According to the indictment, a senior official at the University of Southern California allegedly funneled bribe money directly into a university account, while some payments allegedly were made toward hired test proctors that corrected students’ exam answers and coaches of colleges and universities.

Wyden’s spokesperson told CNBC that the senator has no more details to disclose until the bill is introduced.

The Trump administration also condemned the scam.

“Every student deserves to be considered on their individual merits when applying to college and it’s disgraceful to see anyone breaking the law to give their children an advantage over others,” Education Secretary Betsy DeVos said. “The department is looking closely at this issue and working to determine if any of our regulations have been violated.”

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