San Francisco Tax Preparation / CPA: Information Reporting Waived for Nontaxable COVID Assistance

Filed in CCH NEWS FEED by on February 27, 2021

The IRS has waived the requirement to file Form 1099 series information returns or furnish payee statements for certain COVID-related relief that is excluded from gross income.

Reporting Affected

The IRS waives the requirement to file Form 1099 series information returns, or furnish payee statements, for the following:

  • forgiveness of covered loans under the original Paycheck Protection Program (PPP);
  • forgiveness of covered loans under the Paycheck Protection Program Second Draw (PPP II);
  • Treasury Program loan forgiveness under section 1109 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act ( P.L. 116-136);
  • certain loan subsidies authorized under section 1112(c) of the CARES Act;
  • certain COVID-related student emergency financial aid grants under section 3504, 18004, or 18008 of the CARES Act or section 277(b)(3) of the COVID-related Tax Relief Act of 2020 (COVID Relief Act) (Division N, P.L. 116-260);
  • Economic Injury Disaster Loan (EIDL) grants under section 1110(e) of the CARES Act or section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) (Division N, P.L. 116-260); and
  • shuttered venue operator grants under section 324(b) of the Economic Aid Act.

Other Reporting

The waivers do not affect requirements to file and furnish other forms, such as forms in the 1098 series. For example, the waiver does not apply to the requirement to file and furnish Form 1098-T, Tuition Statement, for qualified tuition and related expense payments, including qualified tuition and related expenses paid with COVID-related student emergency financial aid grants. Also, because borrowers may deduct mortgage interest that the Small Business Administration paid to lenders, lenders may include those mortgage interest payments in Box 1 of Form 1098, Mortgage Interest Statement. Lenders who are unable to furnish with this information by February 1, 2021, are encouraged to furnish a corrected Form 1098 as promptly as possible.


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