Thank you for you answer, clients are bringing the SBA Notices of PPP forgiveness payments for the year in which the loan was forgiven. The letters state the amount the SBA remitted to pay the principal and the interests of the PPP loan. According to Rev Proc 2021-48, a taxpayer that received a PPP loan my treat tax-exempt income resulting from the partial or complete forgiveness of such PPP loan as received or accrued: (3) When the PPP loan forgiveness is granted. 

I am not sure if the interest forgiven is tax deductible even if it was not paid by the taxpayer, and if it should be treated as tax-exempt income, and reported according to Rev proc 2021-48. 

Thank you so much for all the help you can provide.