CCH® AnswerConnect Insights
December 2021

Guidance on Tax Treatment of
PPP Loan Forgiveness for Partnerships

The IRS released three revenue procedures in November, which provide important guidance for partnerships
related to Paycheck Protection Program (PPP) loan forgiveness.

Understand the Federal Income Tax Implications

As a whole, the guidance is considered favorable to taxpayers. The IRS guidance addresses:

  1. timing
  2. allocations and basis adjustments
  3. consolidated groups
  4. amended returns