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Level 5
January 5, 2022
Question

PPP statement

  • January 5, 2022
  • 3 replies
  • 21 views

According to 2021 form 1040 instructions, page 23, a taxpayer is now required to attach a statement to the tax return in regards to receiving a PPP loan in either 2020 or 2021 under Rev. Proc. 2021-48.  Does anyone know what screen to enter this on, before calling Lacerte.  Maybe it will be in a later update?

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3 replies

sjrcpa
Level 15
January 5, 2022

"Maybe it will be in a later update?" Maybe. I hope so.

But if you're gung ho now you can always make a Statement in Notes.

The more I know the more I don’t know.
11BusterAuthor
Level 5
January 5, 2022

Per a call to Lacerte just now, representative did not have an answer.

sjrcpa
Level 15
January 5, 2022

I'm not surprised.

The more I know the more I don’t know.
BobKamman
Level 15
January 5, 2022

Here are those instructions.  IRS has hired an army of older men wearing green eyeshades, to read each statement:

Forgiveness of Paycheck
Protection Program (PPP)
Loans
The forgiveness of a PPP Loan creates
tax-exempt income, so although you
don't need to report the income from the
forgiveness of your PPP Loan on Form
1040 or 1040-SR, you do need to report
certain information related to your PPP
Loan.
Rev. Proc. 2021-48, 2021-49 I.R.B.
835, permits taxpayers to treat tax-exempt income resulting from the forgiveness of a PPP Loan as received or accrued: (1) as, and to the extent that, eligible expenses are paid or incurred; (2)
when you apply for forgiveness of the
PPP Loan; or (3) when forgiveness of
the PPP Loan is granted. If you have
tax-exempt income resulting from the
forgiveness of a PPP Loan, attach a
statement to your return reporting each
taxable year for which you are applying
Rev. Proc. 2021-48, and which section
of Rev. Proc. 2021-48 you are applying—either section 3.01(1), (2), or (3).
Any statement should include the following information for each PPP Loan:
1. Your name, address, and ITIN or
SSN;
2. A statement that you are applying
or applied section 3.01(1), (2), or (3) of
Rev. Proc. 2021-48, and for what taxable year (2020 or 2021) as applicable;
3. The amount of tax-exempt income from forgiveness of the PPP Loan
that you are treating as received or accrued and for what taxable year (2020 or
2021); and
4. Whether forgiveness of the PPP
Loan has been granted as of the date you
file your return.
Write “RP2021-48” at the top of your
attached statement.

11BusterAuthor
Level 5
January 6, 2022

Yes, we will just have to wait to see if Lacerte supplies the statement, as I have been mentioning or if preparers will have to create their own.  

Level 5
January 27, 2022

Lacerte now supplies the statement.  In the section where you enter the PPP Forgiveness income (Sched  C, E, etc.) there's a "Required PPP Loan Forgiveness Statement” 'button' that takes you to the miscellaneous section on screen 3 to enter the statement info.  Also, it looks like the Scorp module correctly reports the forgiveness in column d of the M-2.