I received a CP 2000 letter. Is it generally right and best to accept it and move on? It says "I can file a claim for a refund at a later date." What's that about? Thanks

[magg979s]

Here's breakdown of letter: Income and deductions: I took investments out and didn't report it. My bad. Unintentional. $15,855 worth. 

The tuition and fees: I deducted $4,000. And they say 0$ should be deducted. They did not get 1098T from my school. I have the 1098T form. I want to mail them the form but realize they probably need more documentation than that. Need proof that i paid the tuition. If I send them that information and a letter explaining this, should I not agree with the changes or just amend the return all together? Getting the 4,000 deduction would lessen the blow of taxes owed, right?

[TaxGuyBill]

Did they say they did not RECEIVE a 1098-T, or did they say the 1098-T had an amount in Box 2?

If it is in Box 2 (box 2 is meaningless) you should get a Financial Printout from the college to show what was PAID to the IRS and send that to the IRS in response to the IRS Notice.

[magg979s]

From IRS: "The tuition and fees deduction claimed on Form 1040 line 34 or Form 1040 A line 19 needs to be verified. Your eligible educational institution did not report the amount claimed on your tax return, in box 1 of form 1098T. Please provide a signed explanation of the amounts paid to support the amounts claimed."
Question: So I should send proof of financial statements(credit card invoice) or statement from school(a receipt) saying I paid tuition? Which is better?

[TaxGuyBill]

That means your school was dumb enough to use Box 2 of the 1098-T, rather than Box 1.

The Statement from the school with all of the Financial transaction is best.  That shows all payments, including loans.  If you have other supporting evidence (paid invoices, receipts, etc.) it can't hurt to include those as well.

When you do that, the IRS should accept that tax deduction.

[magg979s]

Yes, I just viewed the 1098T form and, sure enough, the school used box Box 2 instead of Box 1. I will be calling the school on Monday, requesting a statement with all financial transactions from 2015 I paid to the school. I will try to locate actual receipts from my credit card company, too. I will let you know before I send all this to the IRS. I really appreciate the help!!

[fanfare · Accepted solution]

you should dispute the change and submit proof of tuition payment, either as copies of checks to the school or a financial statement from the school showing your payments.

Always send photocopies, not originals.

In your dispute letter, you can state you accept the changes to Line 13 (Schedule D).

[fanfare]

Oh, I forgot. Make sure the IRS is not assigning a basis of zero to your stock transaction. if so, you'll have to file an amended return with a correct Form 8949.

[BobinCT]

Even if they don't use a basis of zero in total, they may have some of the sales at zero.  In other words, be sure they are showing the correct cost basis and, if  not, send them a 8949 with correct info, as fanfare said.