When a Paycheck Protection Program loan is forgiven:

A. The taxpayer will not receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, but they will have to include the amount in their gross business income and pay tax on it.

B. The taxpayer will receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan and will pay tax on the amount.

C.The taxpayer will receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, but will apply for an exclusion so they do not have to pay any tax on the amount.

D. The taxpayer will not receive a Form 1099-C, Cancellation of Debt, for the amount of the forgiven PPP loan, and will not have to pay tax on the amount forgiven.

Answer rating: 100% (QA)

The detailed answer for the above question is provided ... View the full answer