At least that was my interpretation after reading a few pages of the complaint but attorneys tend to throw everything at these things hoping something will stick.  

Different people can interpretate the policy differently.

That's why I don't like arguing contract law because there is room for interpretation. 

The standard of needing to file this form...isn't at least "more likely than not" (50/50) it would be overturned, and position has a "reasonable basis"  - which is interpreted as greater than a 10% chance of success of being upheld in a challenge.  10%!!!! 

There is also significant grey area, subject to interpretation.

More so, each accountant has their own procedures and interpretations.

Haha this is why this situation is so confusing - many people with differing interpretations!

The IRS cross-references your 1098s with claimed deductions, raising concerns if discrepancies arise.Private Lenders and Forms 1098: Private lenders are required to send Forms 1098, but only if they meet specific criteria:The private lender operates as a “trade or business,” distinguishing professional lenders from casual lenders like friends or family members.The loan is issued to an individual or a disregarded single-member LLC.The loan is a mortgage secured by real property.The annual interest paid on the mortgage was $600 or more for the previous year.The conditions leave some room for interpretation, particularly regarding the “trade or business” clause.

Is there some room for creative interpretation?

Even after that, there could be different interpretations by different accountants.