PPP AND RRF LOANS FORGIVEN FOR C CORP

Yes, that is correct.  Since C Corporations' basis tends to be more complicated in valuation, and the forgiveness is not a direct result of operations, basis is not adjusted like an S Corporation or Partnership.  

If the loan was forgiven for a C Corp in 2021 or 2022 the following information needs to be attached via a separate document to Form 1120 when it is filed.  If the forgiveness was reported in 2020 no additional documentation is needed.

Per IRS instructions for Form 1120 2021:

Paycheck Protection Program (PPP) loans. Corporations that have tax-exempt income resulting from the forgiveness of a PPP loan should attach a statement to its return reporting each tax year for which the corporation is applying Rev. Proc. 2021-48, sections 3.01(1), (2) or (3). Any statement for 2021 should include the following information, for each PPP loan: 

1. The corporation's name, address, and EIN; 

2. A statement that the corporation is applying or applied section 3.01(1), (2), or (3) of Rev. Proc. 2021-48, and for what tax year (2020 or 2021), as applicable; 

3. The amount of tax-exempt income from forgiveness of the PPP loan that the corporation is treating as received or accrued and for which tax year (2020 or 2021); and 

4. Whether forgiveness of the PPP loan has been granted as of the date the return is filed. 

A corporation that reported tax-exempt income from the forgiveness of a PPP loan on its 2020 return, the timing of which corresponds to one of the options presented in Rev. Proc. 2021-48, need not file an amended return solely to attach the statement that is described in these instructions. 

If a corporation treats tax-exempt income resulting from a PPP loan as received or accrued prior to when forgiveness of the PPP loan is granted and the amount of forgiveness granted is less than the amount of tax-exempt income that was previously treated as received or accrued, the corporation should make a prior period adjustment on Schedule M-2 for the tax year in which the corporation receives notice that the PPP loan was not fully forgiven.