The Treasury and SBA have released a new PPP Loan Forgiveness Form 3508S, and new interim final rules, that ease the forgiveness rules for borrowers of $50,000 or less. These borrowers are no longer required to reduce forgiveness amounts based on reductions in full-time equivalent employees, or reductions in salaries and wages.
This is great news for many small businesses. However, this is not automatic forgiveness. All of the other rules regarding qualified forgiveness expenses still apply, including the requirement that at least 60% of the forgiveness amount must be from payroll expenses.
The new forgiveness form can be found here:
Instructions for the form can be found here:
New interim final rules can be found here:
For more information on PPP forgiveness and future tax deductions for these borrowers, attend Spidell’s 2020/21 Federal and California Tax Update webinar. Multiple dates and times are available. Click here for details.
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