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Private school scholarships accused of skirting law

11:05 AM, Jan 28, 2013   |    comments
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(File photo by Christopher Furlong/Getty Images)

ATLANTA -- A complaint to tax authorities alleges a scholarship system meant to help disadvantaged students is being manipulated to pay private school tuition costs of some donors' children.

The Southern Education Foundation will file the complaint Monday asking the Georgia Department of Revenue to investigate what it calls irregularities in the tax system. The Associated Press obtained the complaint in advance.

The program allows tax credits to people or corporations who donate to nonprofits that provide scholarships for private school students. State law and rules ban donors from earmarking scholarships for individuals.

The foundation says evidence shows nonprofits encourage donors to recommend students for scholarships and that schools encourage families to donate if they want scholarships for their students.

Tax officials haven't received the report and said they couldn't comment.

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