margowalkercpa
Level 3

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?  

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