How to resolve Lacertediagnostic ref. 2056734

This article will help to resolve the following diagnostic:

• If the taxpayer reports tax-exempt income from the forgiveness of a PPP Loan, a statement needs to be attached to the return for each tax year in which the taxpayer is applying Rev. Proc. 2021-48, sections 3.01(1), (2), or (3). Please use the input fields in Miscellaneous screen to complete the statement. (ref. #2056734)

To resolve, follow these steps:

Locate the PPP Loan Forgiveness Section for the tax module you are in:

1. In the Partnership module, go to General, then Screen 3 Miscellaneous Information
2. In the Corporate module, go to General, then Screen 4.1 Miscellaneous Information
3. In the S-Corp module, go to General, then Screen 3.1 Miscellaneous Information

Fill in all applicable fields in the PPP Loan Forgiveness Statement section. The program will generate a Rev. Proc. 2021-48 statement that can be reviewed on the Forms tab under Statements.

This statement will be included in the e-filed federal return.