Latest on the Paycheck Protection Program
Deductibility of expenses: As you know, the IRS ruled earlier this year that otherwise-tax-deductible expenses that are paid with a forgiven PPP loan will not be deductible. This ruling is in direct conflict with the statute, which clearly said PPP loans would not be taxable. NAW and our trade association colleagues have been working with allies in the House and Senate to pass legislation that would reaffirm statutory intent and reverse the IRS ruling. We have also communicated with the SBA and Treasury urging that the IRS ruling be rescinded, but with no success – Secretary Mnuchin has been truly “dug-in” on this issue.