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.

This episode is brought to you by the AICPA’s Tax Section, your home base to maintain your professional edge. To learn more about the Tax Section, check out aicpa.org/tax or sign up for a free web tour.