Q. Is the form received from the college correct?
Only you can answer that from your own financial records. If you did not pay tuition (and/or other qualified expenses) during the tax year, you are not eligible to claim the credit. or deduction.
That said, it is highly unusual for the IRS not to accept the amount shown in box 1 of the 1098-T as proof of payment. Read the IRS letter carefully to see which technicality they are after you for.
You may only need to prove that you actually paid tuition (and other qualified expenses), with school statements and cancelled checks and/or bank or credit card statements. The IRS has been cracking down on schools that send out a 1098-T with box 1 blank. They are no longer accepting an amount in box 2, of a 1098-T, as proof that you paid tuition.
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