The department said in a statement Monday that recently enacted legislation conformed the state to federal treatment on forgiven PPP loans and that those who reconciled differences between federal and state treatment of forgiven loans before the law was passed should amend their returns.
Filers should review their returns to modify or remove the reconciliations that were required when the state did not conform to federal treatment, the department advised, noting that qualified business expenses that were paid for with forgiven loans will continue to qualify for deductions.
Those who have not yet filed their 2020 business profits tax returns should note that tax schedules have not been updated to reflect the new law, the department said.
--Editing by Vincent Sherry.
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