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How remediate an "unqualified" distribution from a Sec. 529 Plan?


TaxCPANY

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My US client withdrew 529 money in order to fund a dependent's tuition at the Scottish university she'd been accepted to. BUT, the student subsequently was denied a visa to attend that school. (Don't know why, yet.) The Scottish university refund of the 529-sourced payment occurred *more* than 60 days after my client had disbursed the funds; so the 529 plan is threatening us with penalties for "premature distribution, etc."
How do I report/appeal this real-world, non-negligent predicament on the dependent's or parents' 2013 tax returns? Would there also be a way to petition the 529 plan trustee to document that problem?
Great thanks in advance, Taxcpany

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