Lenders Must Refile To Exclude Small-Biz Virus Loans, IRS Says

Lenders that have filed a certain income tax form with the Internal Revenue Service must refile it to exclude small-business loan payments that recent pandemic-related legislation retroactively excluded from gross income, the agency said Monday.

Forms 1099-MISC that reported U.S. Small Businesses Administration loans related to novel coronavirus pandemic relief must be refiled with the agency to exclude those amounts from gross income, the IRS said in an announcement. The pandemic-related Tax Relief Act, passed as part of a spending bill in December, retroactively excluded the SBA loans from gross income, according to the agency.

Lenders should also provide borrowers with amended Forms 1099-MISC to reflect the excluded funds, the agency said. The financial relief was originally authorized last March by the Coronavirus Aid, Relief and Economic Security Act , according to the agency.

--Editing by Neil Cohen.

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