IRA Withdrawal Due to Crypto Scam

A client was a victim of a crypto scam and as a result withdrew approximately 500k from her Traditional IRA and had nothing withheld. They have reported the scam to the FBI and FTC. Do you know if there is any mechanism or precedent for the IRS to waive the taxes owed on the amount withdrawn when she files her 2023 taxes? This was her life’s savings and will not have any other dollars to pay the tax. Thank you!!





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