I received a cp2000 because the IRS did not receive a 1098-T form for my spouse's education credits claimed. We cannot produce these documents or obtain them from his school. We also cannot provide bank statements to show any tuition paid, and he did not receive any scholarships or grants. We will need to go ahead and pay the tax.
So even though the letter says that we do not need to amend our 2014 return, I am wondering if we still should, especially since I don't believe we owed $2500 before the credits were applied. I believe we would owe less and not the $2500 plus interest that the IRS is calculating. Or is too late to file an amended return since the CP2000 has already been sent?
In addition, we will need to amend our 2015 return for the same reasons before the IRS catches it, but I'm almost certain that will trigger an audit. Still, I suppose that would be better than having them assess penalties plus more interest.
So my questions are:
Is there any way to negotiate the $2500 plus interest the IRS is assessing for the 2014 return?
Should we file an amended return for both 2014 and 2015, or just 2015?
How long do I have to amend our 2015 return?