News Detail

IRS Announces Information Reporting Requirements for PPP Loans Forgiven Under the CARES Act

The Internal Revenue Service (IRS) has clarified that lenders who make Paycheck Protection Program (PPP) loans that are later forgiven under the Coronavirus Aid, Relief and Economic Security (CARES) Act should not file information returns or furnish payee statements to report the forgiveness.

By issuing Announcement 2020-12, the IRS clarified that when all or a portion of the stated principal amount of a covered loan is forgiven because the recipient satisfies the forgiveness requirements under section 1106 of the CARES Act, an entity is not required to, “for federal income tax purposes only,” and should not, file a Form 1099-C information return with the IRS or provide a payee statement to the recipient as a result of the forgiveness.

© 2024 Signatory Wall and Ceiling Contractors Alliance (SWACCA). All rights reserved.