IRS Denies Deductions for Forgiven Paycheck Protection Loans
Valuable tax breaks may be lost as government employs "assistance"
Small businesses that manage to get their Paycheck Protection Program (PPP) loans forgiven may find themselves losing valuable tax breaks, according to new guidance from the Internal Revenue Service (IRS).
Companies that qualify for loan forgiveness under legislation Congress approved won’t be able to deduct the wages or other businesses expenses they paid for using the loan, according to an IRS notice published Thursday.
“This treatment prevents a double tax benefit,” the agency said in the notice. “This conclusion is consistent with prior guidance of the IRS.”
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