Each week we receive new guidance and updates on the SBA’s Paycheck Protection Program (PPP). If you are a loan recipient of PPP funds, this notice is for you.
On April 30, the IRS published Notice 2020-32 to clarify the tax treatment of the expenses that are paid with PPP proceeds and used to apply for forgiveness. The CARES Act itself did not directly mention the deductibility of these expenses, which is why the IRS issued guidance.
The IRS has confirmed that no deduction will be allowed under the Internal Revenue Code for normally deductible expenses such as wages, employee benefits, interest, rent, utilities, etc. if the payment of the expense results in forgiveness.
If you have any questions or concerns, Alloy Silverstein’s accountants and advisors are here to help. Contact us at (856)667-4100 or by email at solutions@alloysilverstein.com.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
