The SBA issued a notice on the six months of 7(a), 504, and Microloan payments it is making for borrowers under Section 1112 of the CARES Act.
SBA details tax reporting on covered 7(a) payments
December 09, 2020 / By ICBA
The SBA issued a notice on the six months of 7(a), 504, and Microloan payments it is making for borrowers under Section 1112 of the CARES Act.
The SBA issued a notice on the six months of 7(a), 504, and Microloan payments it is making for borrowers under Section 1112 of the CARES Act.
The notice on related tax issues says:
- 7(a) lenders are responsible for issuing the Form 1099-MISC for: (1) loans that have not been purchased by SBA, and (2) loans that have been purchased by SBA and are serviced by the 7(a) lender.
- SBA is responsible for issuing the Form 1099-MISC for 7(a) loans that have been purchased and are serviced by SBA.
The notice also details tax reporting for the 504 and Microloan programs, what must be reported as income on Form 1099-MISC, who should be identified as the payer and recipient, and more.
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