College refuses 1098-T compliance, even when confronted in writing. What to do?

[InNVHa]

For 2022, my college is reporting the amount that the school billed, during the year on Form 1098-T Box1, rather than the amount actually paid for tuition. I confronted my college in writing, noting the IRS 1098-T instructions stated that billed amounts were an option through 2017, but that the tax law only allowed for reporting amounts paid from 2018 onward. In reading other posts, the issue is that many colleges require tuition payments in Dec 2022, but bill for that tuition in Jan 2023. This causes the 1099-Q and 1098-T to mismatch in significant ways.

The college is adamant and refuses to adjust their 1098-T reporting, claiming that they will continue to report the amounts billed for future 1098-T forms. They seem to have been doing this from 2018 onwards and have no intention of complying with the 2018 Form 1098-T tax law changes. This, of course, makes a mess of things when end-users are using TurboTax.

Should the college be reported to the IRS? If so, how is this done?

In short, what is the next step, and will the IRS force my college to comply with the 1098-T standards?

Guide to Tax Form 1098-T: Tuition Statement
https://turbotax.intuit.com/tax-tips/college-and-education/guide-to-tax-form-1098-t-tuition-statemen...

[KrisD15]

You can try the IRS Taxpayer Advocate to report the difficulty you are having with the school. 

Additionally, in TurboTax, you can adjust the entry of Form 1098-T to reflect what really transpired during the tax year. 

Under Box 1 is a link "What if this is not what I paid to the school?' 

Selecting this link allows you to enter what was paid. 

After entering Form 1098-T, there is a screen that asks if any scholarship reported in Box 5 was for a different year. If you select "Yes", that can be adjusted as well. 

Education Credits and Distributions are based on expenses paid in the tax year, for schooling that tax year and/or the first three months of the following year. 

If you alter the amounts reported on Form 1098-T, be sure to keep records, such as the student school statement and all receipts with your tax file. 

IRS Taxpayer Advocate