- IRS reiterates stance on forgiven PPP loan expenses’ non-deductibility
- AICPA pleas for Congress’ help in the opposition
The IRS has made clear its stance on PPP loans, issuing notices earlier last month that forbade a “double-dipping” clause for PPP loans. Expenses paid for with forgiven loan monies are non-deductible, and the IRS stands firm in its decision. The American Institute of CPA’s, on the other hand, is fighting until the bitter end for the sake of small businesses.
In an exclusive letter, the AICPA asked members to call upon members of Congress for their help in passing the Small Business Expense Protection Acts of 2020. “This legislation will ensure that the receipt and forgiveness of coronavirus assistance through the PPP does not result in an unexpected and burdensome tax cost for organizations that complied with the terms of the PPP,” the letter said.
This is not the AICPA’s first call to action; the organization has been vocal in its opinion on the IRS’ stance and what it feels will be a major financial blow to struggling businesses.
See our website for more updates and information on PPP loans and Coronavirus news or call our office at 516-541-6549 to speak with a member of our Coronavirus Response Team (CRT).
Sincerely,
Devin McQuillan
Associate, Creative Solutions
Contact:
516-541-6549 | Email