IRS Releases Three Revenue Procedures for Tax Effects of Forgiven PPP Loans

November 30, 2021

Taxability of PPP Loan Forgiveness

"The IRS has released three revenue procedures addressing the tax effects when a Paycheck Protection Program (PPP) loan is forgiven.


Rev. Proc. 2021-48 provides that taxpayers may treat amounts that are excluded from gross income in connection with the forgiveness of PPP loans as received or accrued: (1) as eligible expenses are paid or incurred, (2) when an application for PPP loan forgiveness is filed, or (3) when PPP loan forgiveness is granted.


Rev. Proc. 2021-49 provides guidance for partnerships and consolidated groups regarding amounts excluded from gross income and deductions relating to the PPP and certain other COVID-19 relief programs.


Rev. Proc. 2021-50 allows eligible partnerships subject to the centralized audit rules under the Bipartisan Budget Act (BBA partnerships) to file amended Form 1065 and Schedule K-1s on or before 12/31/21, if certain requirements are met." Thomson Reuters


If you have a forgiven PPP loan and have questions about the taxability of that forgiven loan, please contact your advisor. 





This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

Share Post:

By Katrina Arona July 30, 2025
Accepting every donation may not always serve the nonprofit's best interest. Gifts from donors involved in illegal, unethical or controversial activities can potentially expose organizations to embarrassment and reputational damage.
By Katrina Arona July 28, 2025
Women are breaking barriers through passion, resilience, and commitment. Not just striving for the next opportunity, but are redefining what is possible.
By Katrina Arona July 25, 2025
“Nonprobate assets” bypass more traditional estate planning vehicles, such as a will or revocable trust. Instead, they’re transferred to family members through beneficiary designations.
Show More