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529 Purchase Protection
How do I make a claim if the IRS imposes taxes or penalties?
How do I make a claim if the IRS imposes taxes or penalties?

Step-by-step guide on how to make a claim if the IRS imposes taxes or penalties on your 529 expenses.

Updated over a week ago

If the IRS decides to impose taxes and penalties despite the documentation provided for Eligible Expenses that were certified under this policy, you will be entitled to make a claim. To make a claim, email the document sent to you by the IRS and any other state tax agency detailing the taxes and penalties. These documents must contain identification of the specific Eligible Expenses certified under this policy.

Once we receive these documents, we will open an investigation for the claim. We may ask for additional documentation including, but not limited to, evidence of student enrollment, evidence of specific course enrollment, evidence of course completion, evidence of the Beneficiary named on the Eligible 529 Account, and evidence of withdrawal history to validate that 529 Funds were withdrawn in the same year as the Purchase Period.

Once our investigation is complete, and we determine that your claim is valid, we will email you a confirmation and reimburse you for the Covered Taxes and Penalties within 30 days of that confirmation email.

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