More PPP Forgiveness Simplification
The House of Representatives and the Senate both passed the Consolidated Appropriations Act of 2021 on December 21, 2020, and the President is expected to sign it into law. While the main purpose of the Act is funding the federal government through the end of the government’s current fiscal year, it includes many tax-related provisions.
For loans of $150,000 or less, the Act directs the Small Business Administration to create a one-page certification for eligibility for forgiveness that requires no documentation to be submitted with the form. However, the Act does permit lenders to collect documentation related to eligibility for forgiveness to meet regulatory or audit requirements. As a result, the documentation requested as part of the PPP forgiveness application may still vary based on the discretion of the lender.
The PPP is discussed on pages 23 to 29 of the Tax Year 2020 M+O=CPE Individual Tax Year-End Workshop Reference Book.