The US CARES Act established the Paycheck Protection Program (PPP) which allows qualifying small businesses (eligible recipients) to obtain loans guaranteed by the Small Business Administration (SBA).
The IRS on September 22 issued Announcement 2020-12, notifying lenders of covered loans made under the Paycheck Protection Program (PPP) that they should not file information returns or furnish payee statements under Section 6050P to report the amount of qualifying forgiveness with respect to those loans. Section 6050P generally requires a lender that discharges at least $600 of a borrower’s indebtedness to file a Form 1099-C, Cancellation of Debt, with the IRS and to furnish a payee statement to the borrower.
