How to resolve ProConnect Tax diagnostic 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:

1. Go to Input Return⮕Miscellaneous Information⮕Miscellaneous tab
2. Locate the PPP Loan Forgiveness Statement section and enter in all applicable fields.
3. The program will generate a Rev. Proc. 2021-48 statement that can be reviewed on the Check Return tab under Statements.

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