Dec 14, 2021
The IRS recently released long-awaited guidance related to PPP forgiveness with three revenue procedures — Rev. Procs. 2021-48, 2021-49 and 2021-50.
Earlier in the year, the AICPA submitted a letter to the IRS requesting guidance for a range of issues which are addressed in the revenue procedures. These include:
- The timing for tax purposes of when PPP loan forgiveness is received or accrued
- How partners and partnerships may allocate PPP forgiveness as exempt income and allocate deductions resulting from expenditures attributable to the use of forgiven PPP loan proceeds
- How eligible partnerships subject to audit procedures under the Bipartisan Budget Act of 2015, P.L. 114-74, (BBA partnerships) may file amended returns.
Consequently, amended returns remain an area of confusion for many professionals. On today’s Tax Section Odyssey episode, Jan Lewis, CPA, Tax Partner — Haddox Reid Eubank Betts PLLC, discusses some nuanced issues with amended returns, and when they can be used and when they should be used.
What you’ll learn in this episode
- Jan’s overall perspective on the newly released guidance (2.00)
- Reflections around when an amended return is needed and how to broach the subject with a client (5.12)
- Timing issues with the employee retention credit and the Form 941X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund (10.12)
- Billing considerations with amended returns (13.37)
- Final thoughts from Jan (18.00)
- A page from Jan’s travel journal (18.48)
AICPA resources
- AICPA Town Hall Series— Bi-monthly, high-impact news broadcast series that delivers the latest news, analysis, insights and practical guidance to accounting and finance professionals and responds to pressing issues facing the profession.
- Employee retention credit guidance and resources— The ERC is an important of the COVID-19 relief legislation for small businesses. This library provides the ins and outs of calculating this credit.
- SBA PPP resources for CPAs— Tools and resources on the ever-evolving PPP
Other resources
- IRS Operations During COVID-19: Mission-critical functions continue — COVID-19 continues to cause delays in IRS services. The page is kept up to date to inform taxpayers and practitioners of the status of IRS functions.
Note: If your podcast app does not hyperlink to resources, visit https://taxodyssey.libsyn.com to access show notes with direct links.
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