Get your taxes done using TurboTax

Write the lender a letter and tell them they have an error it needs to be fixed.  Go in detail as to why this is an error, and keep that letter in your tax file.  Send the letter to the President of the company and tell them you are going to file a complaint with the Better Business Bureau, the State Atty General and whoever to get their attention. They made an error and it is going to cause a letter from the IRS.  I would consider buying the Audit Protection when you file and ask the lender to pay for it.