Q. The form did actually come from the college. So I can add that in and reduce his taxable scholarship even more?
A. No. Getting the 1098-T from the college is not enough (that's fairly common). You need to verify that he was a enrolled degree candidate (that's uncommon).
Q. Does the IRS get a copy of the 1098 - T?
A. Yes. But they do not try to match the numbers to what the taxpayer reports. They mostly use it to verify eligibility to claim a credit (if your college did not issue a 1098-T, your chances of hearing from the IRS go up).
