The IRS issued new guidelines that concludes that expenses paid with PPP loan forgiven proceeds are not a tax deductible business expense. This reverses what would have likely been an unintended windfall to PPP loan borrowers in that they would be fully reimbursed for the subject expense, not have to pay income tax on that reimbursement and then get a write-off of that expense (which would essentially give the employer back 33% of that expense).
- PPP forgiveness guidance issued as Congress mulls changes May 26, 2020
- SBA Extends Deadline for Lenders to Submit PPP Information May 21, 2020
- Updated Analysis of PPP Loans: Use of Proceeds and Forgiveness May 21, 2020
- NADA All-Dealer Town Hall, May 21 May 21, 2020
- SBA Releases Coronavirus Recovery Information in Multiple Languages May 20, 2020
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