Provider Relief Funds from Human Health Services

[AnmarieA]

I have a client who has a Clinical Psychology office and they received both PPP and PRF grants from the government and there is clear direction that PPP loans below $150K are non taxable for federal and state purposes and are excluded from reportable income and do not have to reduce the expenses that such funds were used for. As far as the PRF grant I can not find documentation to determine if such funds are also tax free for federal and state purposes. Does anyone have information on the taxability of this type of funding referred to as PRF (Provider Relief Funds). My client indicates his contact at HHS says the amount does not need to be repaid and it considered a grant. I would like to validate this information.

Thanks in advance!

Anmarie

[qbteachmt]

IRS:

https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions