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Reporting waived for PPP loan forgiveness

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Tax Hot Topics newsletter The IRS has announced that lenders should not file information returns or provide statements to borrowers that report any qualifying loan forgiveness under the Paycheck Protection Program (PPP).

Section 6050P requires lenders and other applicable entities to report the discharge of debt of $600 or more on Form 1099-C, “Cancellation of Debt.” While canceled debt is generally taxable as income, the CARES Act provides that any loan amount ultimately forgiven under the PPP is excluded from gross income. The IRS is waiving the reporting requirements for PPP loan forgiveness to avoid confusing taxpayers and sending notices of underreporting.

Contact
David Auclair
National Managing Principal
Washington National Tax Office
T +1 202 521 1515

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