I received a 5972C letter from the IRS for my 2015 tax year. I claimed my VA funding fee which they are disallowing. What can I do?

[Critter]

Fight it ... 

VA Funding Fee is Tax Deductible. 

Since the funding fee is a form of mortgage insurance it is fully tax deductible. The funding fee is entered as a part of the 1098 mortgage insurance statement. VA origination fees can also be tax deductible is they are charged in points.

VA Funding Fee Explained with Chart | The Lenders Network