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Post Date:  1/25/2021
Last Updated:  1/25/2021

Summary
Cross References
- Notice 2021-06

The Consolidated Appropriations Act, 2021 waived the requirement to file certain infor- mation returns or furnish certain payee statements otherwise required. As a result, the IRS has issued Notice 2021-06 which waives the requirement to file information returns or furnish payee statements for the following:
1) Original PPP covered loan forgiveness. A lender is not required to file with the IRS, or furnish to a borrower a Form 1099-C, Cancellation of Debt, reporting forgiveness of Paycheck Protection Program (PPP) covered loans.
2) II covered loan forgiveness. A lender is not required to file with the IRS, or fur- nish to a borrower, a Form 1099-C reporting forgiveness of PPP II covered loans.
3) Student emergency financial aid grants. A grantor is not required to file with the IRS, or furnish to a student, a Form 1099-MISC, Miscellaneous Information, reporting the payment of an emergency grant to the student under the CARES Act or another emer- gency financial aid grant under the COVID Relief Act made to students in response to qualifying emergencies.
4) Treasury Program loan forgiveness. A lender is not required to file with the IRS, or furnish to a borrower, a Form 1099-C reporting forgiveness of loans under the Treasury Program loan forgiveness provisions of the CARES Act.
5) EIDL grants. The Administrator is not required to file with the IRS, or furnish to a re- cipient, a Form 1099-MISC reporting the payment of an advance under the Economic Injury Disaster Loan (EIDL) provisions of the CARES Act or a grant under the Eco- nomic Aid Act.
6) Loan subsidies. Neither the Administrator nor a lender is required to file with the IRS, or furnish to a borrower, a Form 1099-MISC reporting the payment of principal, interest, and any associated fees through a loan subsidy authorized under the CARES Act.
7) Shuttered venue operator grants. The Administrator is not required to file with the IRS, or furnish to a recipient, a Form 1099-MISC reporting the payment of a grant to a shuttered venue operator under the Economic Aid Act.

The above waivers apply only to the requirements to file and furnish Form 1099 series information returns and payee statements. The waivers do not affect any requirements to file and furnish other forms, such as forms in the 1098 series. For example, the waiver does not apply to the requirement to file and furnish Form 1098-T, Tuition Statement, with respect to any payments received for qualified tuition and related expenses, including related expenses paid with grants described above under this notice.

Because borrowers may deduct mortgage interest that the Small Business Administra- tion (SBA) paid to lenders under the CARES Act, lenders may include those mortgage interest payments in Box 1 of Form 1098, Mortgage Interest Statement. This will inform bor- rowers that they may deduct such mortgage interest that is paid by the SBA.

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