Page 119 - BusinessStructures & Forms

16:38 - 30-Jan-2023
Page 25 of 31
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Line 7 Fileid: … ions/i1120/2022/a/xml/cycle08/source was not fully forgiven. The corporation
Report any tax-exempt interest received Schedule M-2. Analysis of should attach a statement to
or accrued, including any exempt-interest Unappropriated Retained Schedule M-2 including the following
dividends received as a shareholder in a Earnings per Books information:
mutual fund or other RIC. Also, report this If the corporation treats tax-exempt 1. The corporation's name, address,
same amount on Schedule K, item 9. income resulting from a PPP loan as and EIN;
The corporation should include received or accrued prior to when 2. A statement that the corporation is
tax-exempt income from forgiven PPP forgiveness of the PPP loan is granted and making adjustments in accordance with
loans on line 7 of Schedule M-1 (if it was the amount of forgiveness granted is less section 3.03 of Rev. Proc. 2021-48; and
included on line 1 of the Schedule M-1), or than the amount of tax-exempt income 3. The tax year for which tax-exempt
on Part II, line 25 of Schedule M-3 (Form that was previously treated as received or income was originally reported, the
1120), column (c) as a negative number (if accrued, the corporation should include amount of tax-exempt income that was
it was included on line 25 in column (a) as the difference as a decrease in originally reported for such tax year, and
Income per Income Statement). tax-exempt income on Schedule M-2, the amount of tax-exempt income being
line 6, for the tax year in which the adjusted on Schedule M-2.
taxpayer receives notice that the PPP loan

Instructions for Form 1120 -25-