{"data":{"id":"us-ok/okla.-stat.-tit.-56-56-258","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 56, § 56-258","heading":"Withdrawals under false pretenses or for other than","body":"approved purposes - Penalties.\n\nA. If the fiduciary organization receives evidence that monies\n\nwithdrawn from IDAs are withdrawn under false pretenses or are used\n\nfor purposes other than for the approved purposes indicated at the\n\ntime of the withdrawal, the fiduciary organization shall make\n\narrangements with the financial institution to impose a penalty of\n\nten percent (10%) of the amount of the monies withdrawn or loss of\n\nmatches and may, at its discretion, close the account. If the\n\nfiduciary organization is unable to impose the penalty specified\n\nherein, it shall notify the Oklahoma Tax Commission and the amount\n\nof such penalty shall be added to the income tax liability of the\n\nIDA account holder. All penalties collected by fiduciary\n\norganizations or the Tax Commission shall be deposited to the\n\nIndividual Development Account Revolving Fund created pursuant to\n\nthe provisions of Section 10 of this act.\n\nB. The amount of any withdrawal for purposes other than those\n\nset forth in Section 7 of this act, or any withdrawal for purposes\n\nother than for the approved purposes indicated at the time of the\n\nwithdrawal, shall be taxed as income during the year in which the\n\nwithdrawal is made. The fiduciary organization shall notify the Tax\n\nCommission of any such withdrawals made.\n\nC. The fiduciary organization shall establish a grievance\n\ncommittee and a procedure to hear, review, and decide in writing any\n\ngrievance made by an IDA account holder who disputes a decision of\n\nthe operating organization that a withdrawal is subject to penalty.\n\nD. Each fiduciary organization shall establish such regulations\n\nas are necessary, including prohibiting eligibility for further\n\nmatching funds, to ensure compliance with this section.","path":["OK Code","Title 56"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os56.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"d8eed084a97e6c1940b2b43d14283ce28419791b83aaccff08a528f8a64b76b3","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-56-56-257","next":"us-ok/okla.-stat.-tit.-56-56-259"},"notice":"GroundRules: Original legal text. Not legal advice."}