PPP Loans: Forgiveness Rules and Filling Out the Forgiveness Forms

Author: Greg White

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC

If your clients have received PPP loans, the planning has just begun. We’ll cover crucial issues related to the recently passed Paycheck Protection Flexibility Act and how to maximize debt forgiveness based on the most current information issued by the SBA:

  • Do you qualify to use Form 3508-EZ?
  • When can you submit the forgiveness applications?
  • Can you keep your original 8-week covered period?
  • What information do you include with the forgiveness applications?

Publication Date: August 2020

Designed For
Practitioners advising individual and business clients.

Topics Covered

  • Practical planning ideas to maximize forgiveness
  • Planning for the FTE and wage reduction haircuts
  • Backup Positions
  • Forms 3508EZ and 3508
  • Documentation Differences
  • Forgiveness Applications: When to Apply
  • Constraints on Forgiveness
  • Forgivable Costs
  • Covered Overhead: Mortgage Interest, Rent, Utilities
  • "Covered Nonpayroll"
  • Paid or Incurred
  • Payroll Costs
  • Measuring Full‐Time Equivalent Employees
  • Wage Reduction Haircut
  • De Minimis Exemption: Declined Job Offers, Quits, etc.
  • Full‐Time Equivalents Only
  • FTE: "Overflowing" Forgivable Costs
  • Getting Ready for the Bank Review (Forgiveness)
  • Forgiveness: Examples and Forms
  • NEW FAQs: Issued 8/11/20
  • Should You Wait? To Submit Forgiveness App
  • Appeals

Learning Objectives

  • Identify the new legislation and how it applies your clients
  • Recognize how to complete the forgiveness application
  • Identify remaining areas where we still lack guidance
  • Differentiate the documentation between Form 3508 and Form 3508EZ
  • Recognize the steps in the computation of applying the FTE haircut
  • Identify correct statements regarding the FAQs released in August 2020
  • identify nonpayroll costs
  • Describe the Alternative Payroll Covered Period
  • Recognize the three eligibility standards for using Form 3508EZ


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of individual and business tax preparation.

Advance Preparation

Registration Options
Regular Fee $59.00

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