To avoid taxpayer (and IRS) confusion come next tax filing season, IRS Announcement 2020-12 advises lenders that taxpayers should not receive Form 1099-C’s in connection with the discharge of indebtedness of payroll loan forgiveness under the CARES Act. The filing of an Information Return (1099-C) could result in a taxpayer receiving an IRS Letter CP2000 for underreporting. IRS Letter CP2000 is issued when income information on file with the IRS does not match the information a taxpayer reported on his or her tax return. To avoid this confusion and inconsistency, the IRS does not want lenders to file 1099-C’s at all.