For your AMENDED return.  First, add back those reductions you took in salaries/other expenses. The IRS finally came around and ruled you could deduct those even if PPP funds were used to pay them. Second, on page 6, in the M-1 section, on all that I did, I went to line 7 and entered "Cares Act -- SBA PPP Funds (see Attached) " and of course, then the amount on that line.  I attached a very plain statement to the effect that the taxpayer received $xx,xxx Payroll Protection Program funds, and that loan was completely forgiven.

There should not be a M-2 adjustment, as those forgiven PPP funds would/should show up on the income statement after forgiven (albeit as Non-taxable Income).