Taxpayers need guidance on how provisions of the Consolidated Appropriations Act, 2021, (CAA 2021) interact, the AICPA stated in a letter to Treasury and the IRS.
Under CAA 2021, taxpayers who obtained loans under the Paycheck Protection Program (PPP) are also eligible to claim the employee retention credit (ERC).
In the letter, the AICPA recommended new guidance that states the filing of a PPP loan forgiveness application is not an election by the taxpayer to forgo the ERC for wages reported on the application that exceed the amount of wages necessary for loan forgiveness.