One of the primary benefits of the Paycheck Protection Program (PPP) loans to help businesses keep their workforce employed during the COVID-19 pandemic was that many eligible borrowers qualified to have their loans forgiven, and the forgiveness is not taxed. However, there were some instances where borrowers had their loans forgiven despite not being eligible for forgiveness. An IRS review of the program discovered that some ineligible taxpayers got their loans forgiven, often through misrepresentations or omissions. This fall, the IRS announced that those taxpayers whose loans had been improperly forgiven must include the forgiven amount in their income.
