challenge a 1040 correction?

Not likely.

Did they say why they were not allowing your student loan deduction? Challenging this change would not normally open you up to a full audit, unless there was something else going on that found out about, e.g fraudulent use of a SSN. You can call them using the phone number they sent you or send in documentation of your student loan interest payments (you did just deduct the interest, not the full payment, right?)

It might. Or not challenging it might.

That's most likely, I believe. (You should provide that along with the challenge, unless they say not to.) Seth

Making corrections like this won't automatically subject you to a full audit. I went back and forth with the IRS 3 times last year due to a misunderstanding over some investment income, and I didn't get audited.

-- Barry Margolin, snipped-for-privacy@alum.mit.edu Arlington, MA

Several possibilities here...

You may be classifiled as rich (your AGI is too high), therefore ineligible for the (full) deduction for your student loan interest. There may be a math or calculation error.

The IRS may not have matched the payor's reporting with your deduction. You should call the phone number on the notice.

Challenging this type of notice generally does not result in a tax examination. ___________________________________

-----> real address on hobokeni or hobokenx

No. When IRS examines returns using correspondence technique, it has determined that more in-depth techniques will not likely be productive. To do otherwise, especially as you suggest (retribution), violates several IRS policies. Fred F.