The 10% penalty has been suspended for early IRA deductions as part of the cares act. How strict is the its in enforcing their vague "related to covid" wording? I did have covid in January 2021. I quit my job in February 2021 partly because of how my coworkers were treating me post covid. Thus I "retired" at 54 and started taking early withdrawals from my IRA to replace my income. I have been paying the 10% penalty in addition to income taxes on my early withdrawals, but it appears I can stop paying the 10% penalty because of the CARES Act. How does the IRS verify, check, audit these claims? How stringent has the IRS been on people who took advantage of this law's provision in 2020?
