The Internal Revenue Service (IRS) has now provided additional clarification on the required minimum distributions on Inherited Individual Retirement Arrangements (IRA) for non-spouse beneficiaries. The Secure Act (Setting Every Community Up for Retirement Enhancement Act) of 2019, changed the distribution rules from over the beneficiary lifetime to a distribution of ten (10) years. The industry interpretation was understood the distributions could occur all at once or in multiple distributions and all funds had to be distributed on or before the tenth (10) anniversary of receiving the inheritance. Well, in February 2022, the IRS issued a proposed regulation surprising the tax preparation industry and stated the required minimum distribution was required each year based on the beneficiary life expectancy, if they were 72 years or older. So, in 2021 and 2022, if you didn’t take your required minimum distribution on the Inherited IRA, you have until 2023 to take your first required minimum distribution or perhaps later, when final regulations are issued. Now, what this means is anyone 72, or older, is required to take their required minimum distributions on the inherited IRA for the years remaining and you still have to distribute all of the inherited IRA funds within ten (10) years. One other note, if you should die before reaching the tenth-year anniversary, then your beneficiary(ies) will be required to still meet the tenth-year anniversary full distribution requirement. I know, you need to be a tax professional to understand this, and I highly recommend seeking advice on this issue. What about the penalty for not taking out the required minimum distributions for 2021 and 2022. The IRS has stated no penalties will be assessed for failure to take the distributions, since there was substantial confusion on the requirement and if you did pay the penalty, you may request a refund of the penalty paid. Final regulations are expected by the end of 2022 or the beginning of 2023. On a business note, if you applied for a Payroll Protection Program loan is forgiven based upon misrepresentations or omissions, the business will not be eligible to exclude the forgiveness from income and are required to file amended returns to be compliant. Remember, taxes are complicated, and I recommend you seek adequate advice on any issue you are not familiar with. It can result in a substantial tax liability, as easy as checking a box incorrectly. I also want to express how thankful I am to provide my monthly article for you. Our office hopes you have a wonderful Thanksgiving and grateful for what you have. Happy Thanksgiving!!! See you in the Christmas Parade!!! This is a very brief overview. For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor. Provided by Tracey C. Higginbotham, E.A., (321) 632-5726, a member of the National Society of Accountants.