IF I had a return ready to file, with this issue, I would discuss the pro's & con's with my client & likely advise to exclude the 'refund' and disclose the 'why' on the tax return.  It'll be cheaper to pay any IRS penalties & interest than my fee to amend a return for a 'max' of $ 1050.00 in underreported income.

I strongly value David Fogel's opinion (he's been a mentor to me in the past) and his research is well-documented.

The tax on $ 1050 (since it's likely the folks receiving the max are NOT in the highest Federal Tax bracket) is immaterial.   

However, at this stage there is NO official IRS position on this - and to say "it's not taxable" is not a statement of fact.  And to say "well, the software is excluding it so it must be OK" is just wrong from a professional tax preparer standpoint.