Businesses whose Paycheck Protection Program loans are forgiven do not have to file a Form 1099-C reporting the forgiveness to the agency, the IRS said in a notice. The agency also said that students who receive financial assistance from their universities to cover certain costs stemming from the novel coronavirus pandemic do not have to file Forms 1099-MISC, according to the notice.
Information returns also do not have to be filed to report Economic Injury Disaster Loans and grants for closed venues, the IRS said. Under the Consolidated Appropriations Act of 2020, which was passed in December, forgiven PPP loans and other types of financial aid are not included in gross income for tax purposes.
--Editing by Robert Rudinger.
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