The Internal Revenue Service has clarified in an IRS notice today, that no deductions will be allowed for those expenses resulting in loan forgiveness granted through the Paycheck Protection Program. While we are disappointed in this outcome, it did not come as a surprise (as predicted in our 4/17/2020 PPP Forgiveness Webinar). In most cases this should not change a business’s decision on whether to accept the PPP funds or not. For details, please see the full IRS notice.
Home \ “Nontaxable” PPP Loan Forgiveness Will Essentially Be Taxable