@shaun wrote:
Have you seen your position sited in code ? I would love to have it printed out to show clients who freak out when we finish their tax return. I agree that is the only entry you can make without other guidance that it is expressly non taxable. Another COVID item that is nice but will not be fun to explain to clients this year.
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, the SBA is authorized to pay six months of principal, interest, and fees on covered SBA loans. The Consolidated Appropriations Act, 2021, P.L. 116-260, provides that these payments are not includible in the borrower’s gross income. In addition. issued Jan. 19, waived Form 1099-MISC reporting requirements for these payments.
