How do financial aid offices know you鈥檙e sending in real tax returns when they ask for verification?

When a student gets selected for verification, what鈥檚 to stop someone from submitting a fake tax return? The financial aid offices don鈥檛 have access to IRS information. If the FAFSA applicant's records on the application are compliant with the "fake" tax return, wouldn't that mean the applicant is eligible for financial aid, seeing that everything on the tax return match up with the FAFSA application? I personally think the financial aid system should be revised.

RE: SUBA AND Dk:

I understand what your saying but if I was selected for verification and I just changed some numbers on my parents tax return and gave it to the school and it looked like a normal tax return they would disburse me the money and the government would have no SAY SO on the situation. So in an essence, your wrong they won't know unless it is an obvious fake return. They could verify with the IRS but i'm sure they would have to request another IRS form. Other than that the I don't see how they'd know. Like i said, the system needs review.

You are right. The financial aid office may not know that you are submitting a fake IRS form.

HOWEVER....

Do you really want to risk fines and jail time with TWO federal government agencies (IRS & Dept of ED) for a few extra bucks in financial aid?

There is a legal certification on the FAFSA that states "If you purposely give false or misleading information, you may be fined up to $20,000, sent to prison, or both."

When you sign the tax form you state "Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete."

If it is found that you submitted fraudulent information, you could be in big trouble. And by changing your PARENT'S form, you are not only subjecting yourself to the potential for fines/imprisonment, but them as well!

If the school suspected that you were providing fraudulent information, they are required by law to turn you in to the Feds. They don't have to request a new tax return from the IRS. They could just turn you in and/or deny you aid.

The federal government is still working out the kinks on matching the income data on your FAFSA with the IRS. My guess is that when that happens there might be a whole lot of back-checking happening. Which would be pretty easy to do since so much of the data is electronic.

There is NO statute of limitations on fraud against the federal government. There are people who have even had their social security checks garnished to recover a federal debt!

Rosco, you are making a huge assumption; schools cannot access IRS information! Gov't agencies don't have access to each other's data. There is not one big goverment database that has all of our info in it. Dept of ED has it's own; IRS has its own. They need PERMISSION to share/review it. Report Abuse

No, the financial aid offices don't have the access but the government does! THEY are the ones who are giving you the money--NOT the financial aid office. They are merely paper pushers and nothing more. The government is the one who determines how much you get and when.

And, you'll have to talk to a lawyer or read that teeny tiny fine print in the application--I am positive somewhere it will say that lying on the form is a federal offense.

So, don't get any ideas!

dk is correct, on your fafsa you give social security numbers for all people you report income for.....the federal government can compare that to what you reported to the irs.

People may think they're getting away with something but it will come back to bite them on the butt.

They don't. But if they think it's suspicious, they might investigate it.