The IRS today released an advance version of Notice 2016-13 to provide transition relief for section 529 qualified tuition programs that timely file a 2015 Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530), but that does not reflect the repeal of the aggregation requirement under section 529(c)(3)(D) for distributions from qualified tuition programs.
Notice 2016-13 [PDF 23 KB] reflects concerns expressed by section 529 qualified tuition programs about their inability to adjust their systems to make retroactive changes to the new method of calculating the earnings portion of a distribution before the due date of the 2015 Form 1099-Q. The notice states that the IRS will not impose penalties under section 6693 solely because of a reported earnings computation that does not reflect the repeal of section 529(c)(3)(D).
This notice is limited to 2015 Forms 1099-Q required to be filed by February 29, 2016 (or March 31, 2016, if filed electronically).
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