November 23, 2021

2021 – 11/19

The IRS has issued guidance on the timing of tax-exempt income arising from forgiven PPP loans. Three Revenue Procedures advise that taxpayers may treat amounts as excluded from gross income in connection with PPP loan forgiveness: when eligible expenses are paid or incurred; when a PPP loan forgiveness application is filed; or when PPP loan forgiveness is granted. The rules can be complicated. Contact us for more information in your situation. (Rev. Proc. 2021-48, Rev. Proc. 2021-49 and 2021-50)