IRS Relieves Lenders of PPP Loans From Reporting Burden (1)

Banks and other lenders who make loans that are later forgiven under the Paycheck Protection Program don’t need to file information returns with the IRS or borrowers, the agency said.

Normally, canceled or forgiven debt becomes taxable income to the borrower. If the forgiven amount is $600 or more, the lender has to submit a form to the IRS and the borrower.

The IRS in an announcement Tuesday said that reporting obligation doesn’t apply in the case of forgiven PPP loans, which aren’t taxable.

Waiving that obligation “saves both the borrower and the lender time and resources,” ...