Confused by this answer. I recorded the 2020 PPP loan as debit to cash and credit to liability, reflected on balance sheet ending 2020. Forgiveness of loan granted in 2021, entry to record was a debit to the liability account to remove contingent liability with a corresponding credit to Add'l paid in capital.
Now turbo tax is asking if there was a 2021 loan forgiveness, which indeed there was. When I answer "yes" to that question, a book difference is reported in M-1. Now you're suggesting answering "no" to that question, which is not true, which would correct the error, however, would that be a red flag that could trigger adverse consequences?
Thank you
