I agree, its not fair, its a faulty system, but its what we have to work with. 

Ive seen some huge paybacks, $527 isn't too horrible.  Ive heard that filing MFS might be an option and would limit payback (Im in a Community Property State, which rarely works out well MFS, so Ive never really looked into it), but with only $527 payback, Im not sure that MFS would do much either.

Thats all I got Andy, sorry.  Maybe someone else has some better ideas.