IRS Issues Notice Disallowing Deductions for Forgiven PPP Loans
An IRS notice issued Thursday night makes clear that recipients of Paycheck Protection Program (PPP) loans that qualify for loan forgiveness under the CARES Act will not be able to deduct the wages or other businesses expenses they paid using funds provided by the PPP loan. Specifically, the IRS notice says that “[t]his treatment prevents a double tax benefit,” and “is consistent with prior guidance of the IRS.”
© 2021 Signatory Wall and Ceiling Contractors Alliance (SWACCA). All rights reserved.