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November 18, 2021

Three new revenue procedures provide partnership/consolidated group guidance on accounting for PPP loan forgiveness

The IRS has issued three revenue procedures providing guidance regarding amounts excluded from gross income and deductions relating to the Paycheck Protection Program (PPP) and other COVID-19 relief programs. Revenue Procedure 2021-48 addresses the treatment of amounts excluded from gross income in connection with forgiveness of PPP loans. Revenue Procedure 2021-49 provides guidance for partnerships and consolidated groups on allocations under IRC Section 704(b) and corresponding adjustments to partners' bases in partnership interests. And Revenue Procedure 2021-50 allows eligible Bipartisan Budget Act of 2015 (BBA) partnerships to file amended Forms 1065 and Schedules K-1 on or before December 31, 2021 to adopt guidance set out in the other two revenue procedures.