Paycheck Protection Program (PPP) Loans Reporting – Rev. Proc. 2021-48
Forgiveness of Paycheck Protection Program (PPP) Loans Reporting – Rev. Proc 2021-48.
Under IRS Rev. Proc. 2021-48, Section 3.01, taxpayers are permitted to treat tax-exempt income resulting from the forgiveness of a PPP loan as received or accrued:
- as, and to the extent that, eligible expenses are paid or incurred;
- when you apply for forgiveness of the PPP loan; or
- when forgiveness of the PPP loan is granted.
If you have tax-exempt income resulting from the forgiveness of a PPP loan, attach a statement to your return reporting each taxable year for which you are applying Rev. Proc. 2021-48.
Any statement should include the following information for each PPP loan:
- Your name, address, and ITIN or SSN
- A statement that you are applying or applied Section 3.01(1), (2), or (3) of Proc. 2021-48, and for what taxable year (2020 or 2021) as applicable
- The amount of tax-exempt income from forgiveness of the PPP loan you are treating as received or accrued, and for what taxable year (2020 or 2021)
- Whether forgiveness of the PPP loan was granted as of the date you file your return
Write “RP2021-48” at the top of your attached statement.
There seems to be quite a bit of misinformation on the internet about how to report this loan forgiveness. If you might be in search of an experienced Enrolled Agent licensed by the US Treasury, contact me with questions, comments, concerns, and/or clarifications re: forgiveness of Paycheck Protection Program (PPP) loans reporting – Rev. Proc 2021-48.
