Lenders Are Not Required to Report PPP Loan Forgiveness to IRS

On Tuesday, September 22nd, the IRS released Announcement 2020-12, stating that lenders who make Paycheck Protection Program (PPP) loans are not required to file an information return or furnish a payee statement if all or a portion of the loan is later forgiven based on the borrower satisfying requirements of section 1106.

Under section 1106 of the CARES Act, a PPP loan may be forgiven if certain requirements are met by the borrower. The new announcement states that an institution is not required to “for federal income tax purposes only,” file Form 1099-C for funds that are forgiven. In addition, they are not to give the recipient a payee statement for forgiven amounts.

If you have questions regarding this update, please contact our Financial Institutions Group. We are always here to help.

Proudly Introducing…

We are pleased to introduce our two newest employees to our amazing team, Kristine Schaeffer, CPA and Zeke Cassidy. Kristine has stepped into a Manager role in our Highland office after spending more than 30 years in public accounting, and Zeke completed our FOCUS Internship Program this past Spring and joins us as our newest Staff Accountant in Edwardsville. We are excited to have you both!