Scott is preparing Allison’s Form 1040. Allison’s gross income for the tax year was $75,000. In calculating her deductions to arrive at adjusted gross income (AGI), Allison estimates that she paid around $2,000 in student loan interest. Her student loan servicing company, Crippling Lifetime Debt (CLD), went out of business and her debt was transferred to other loan servicers. Allison monitored all of her account records online, which are no longer readily available because of CLD’s closing. Based on Allison’s monthly payments which he viewed in her bank activity, Scott believes Allison’s estimate is reasonable. May Scott use Allison’s estimate to arrive at Allison’s AGI?

a. Yes, because Scott believes the estimate is reasonable.

b. No, because the records at the new loan servicers will be able to confirm or dispute Allison’s estimate.

c. Yes, because it is less than 10% of Allison’s AGI.

d. No, because it is an adjustment for AGI.