Did you read it? Who do you think they are that file " individual tax returns reporting no gross income". Not even 'net income'. Gross. These are not peeps who got creative with deducting the yacht and lake home against salary. These are the long term unemployed, no longer even counted in unemployment statistics anymore because UI ran out long ago. The only reason they have to file is probably to deal with things like the penalties while liquidating their retirement accounts to survive and manage the demise. Otherwise why even file? No where did it say they didn't pay taxes. Not sure if penalties on early withdrawal are subject to the standard deduction.