#1 Don't panic ... this is a common letter so read it carefully and respond appropriately...
What should I do if
I receive a letter from the IRS or I’m audited?
Taxpayer
rights
You will benefit from knowing your rights as a taxpayer and
being familiar with the IRS's obligations to protect them. The goal of
the Taxpayer Rights Corner is to inform you of
your rights during every step of your interaction with the IRS.
Did you
receive a letter?
If you receive a letter or are audited by the IRS, it may be
because the IRS did not receive a Form
1098-T, Tuition Statement, verifying the student’s enrollment. Or, we
need additional information to support the amounts of qualified expenses you
reported on Form 8863. Review your Form
1098-T to make sure the student’s name and social security number
are correct. If they do not match, contact the school to correct the
information for future 1098-T reporting. If the student should have and did not
receive the Form 1098-T, contact the school for a copy. Note:
There are a few exceptions in which educational institutions are not required
to furnish Form 1098-Ts. For details please see “What
is Form 1098-T, Tuition Statement and how do I get
it?”
If you claimed expenses that were not reported on the Form
1098-T in Box 1 as amounts paid or if your school reported the
amount you were charged for qualified expenses in Box 2, please send us copies
of paid receipts, cancelled checks or other documents as proof. See your letter
for further instructions for what documents to send. If you do not have the
letter, see our page Forms
886 May Help You for the Forms 886-H-AOC and 886-H-AOC-MAX for examples.
Form 886-H-AOC is also available in Spanish.
Audit and
examination process
IRS selects income tax returns for examination identified by
computer programs showing a return has incorrect amounts. The examination may
or may not result in a change to your tax or credits.
Use the following links for additional information:
Pub 3498-A, The Examination Process (Examinations
by Mail) (PDF)
Pub
556, Examination of Returns, Appeal Rights, and Claims for Refund
(PDF)
https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc
