Terranova & Associates, LLC strives to keep our clients up to date during these unprecedented times with the fluid Government COVID - 19 tax changes that will affect you.
The Internal Revenue Service has issued Notice 2021-6. This Notice waives the requirement for taxpayers to issue the standard required informational forms to recipient taxpayers for certain COVID-related financial relief that is excluded from gross income. Most people know it as Form 1099. The Internal Revenue Service specifically waives the Form 1099 filing requirement for:
Forgiveness of covered loans under the original Paycheck Protection Program (PPP);
Forgiveness of covered loans under PPP II;
U.S. Treasury Program Management Authority loan forgiveness;
Certain COVID-related student emergency ﬁnancial aid grants;
Economic Injury Disaster Loan (EIDL) grants; and
Shuttered venue operator grants.
This Notice is specific, only the above items do not require a Form 1099 to be filed. The use of the COVID relief funds by taxpayers still require the appropriate “Form 1099” to be filed.
For those readers that want to know the technical support for this Notice:
This notice waives the requirement to ﬁle certain information returns or furnish certain payee statements otherwise required by the Internal Revenue Code (Code) pursuant to section 279 of the COVID-related Tax Relief Act of 2020 (COVID Relief Act), enacted as Subtitle B of Title II of Division N of the Consolidated Appropriations Act, 2021, Pub. L. 116-260, 134 Stat.1182 (December 27, 2020) (CAA 2021). Speciﬁcally, this notice waives the requirement to ﬁle certain information returns or furnish certain payee statements otherwise required by chapter 61 of the Code with respect to amounts excluded from gross income by reason of section 7A(i) of the Small Business Act (15 U.S.C. §631 et seq.) or sections 276(b), 277, or 278 of the COVID Relief Act. This notice also obsoletes Announcement 2020-12, 2020-41 I.R.B. 893.
The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.
We are available for consultations regarding this and other tax matters if you need assistance, please contact us. We are excited to welcome the new clients that have retained our services!
This is our update as of this time and we will strive to keep you informed; please keep in mind this is a fluid topic and subject to change at any time.
This information should be used to strategically navigate through the months ahead. We are in the office and are happy to assist you.
Please feel free to share this with your relatives and friends. Remember we are here to help our clients during this difficult time.
Terranova & Associates, LLC.
Thomas D. Terranova, Jr., CPA, PFS, CITP
150A Andover Street, Ste 11C
Danvers, MA 01923
Tel: (978) 774-7700 X 104, Fax: (978) 774-7705
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