CARES Act: IRS Notifies Lenders Not to File Form 1099-C or Provide IRS Payee Statements for PPP Loan Forgiveness Amounts | Practical Law
The Internal Revenue Service (IRS) issued an announcement notifying lenders not to report the amount of qualifying loan forgiveness granted to borrowers under the Paycheck Protection Program (PPP). PPP lenders should not file Form 1099-C information returns or furnish payee statements under section 6050P of the Internal Revenue Code (Code) for qualifying PPP loan forgiveness. Under section 1106(i) of the CARES Act, for purposes of the Code, these amounts are excluded from gross income. Reporting of loan forgiveness amounts by PPP lenders would only cause confusion.