margowalkercpa
Level 3
04-12-2022
04:37 PM
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Thank you so much for your response. Is there something else I should be doing with the PPP funds paid out of the ESOP? Previously the tax exempt PPP funds were reported on the Schedule K-1. Since the employee is no longer a shareholder of the company, there is no K-1 for 2021. Isn't the PPP funds only tax exempt when paid out of the S-corp?