Unless Congress acts soon, many small businesses may be hit with an unexpected tax bill related to PPP loans. Join us in supporting the AICPA’s efforts to push for deductibility of PPP-funded expenses! Take action by writing to your Congressman to request PPP expense deductions be allowed. To make it easy, the AICPA has drafted an email that you can use. Simply copy/paste the message below. To find your U.S. senators’ and representatives’ contact information visit congress.gov
I am writing you today to strongly encourage you to include in any year-end, must-pass legislation language that will allow millions of small business owners a tax deduction for expenses paid with Paycheck Protection Program (PPP) forgiven loans.
Bills have been introduced in the Senate (S.3612 sponsored by Senator Cornyn (R-TX)) and in the House (H.R. 6821 sponsored by Representative Holding (R-NC) or H.R. 6754 sponsored by Representative Fletcher (D-TX)) that would ensure that PPP loan recipients are provided the full benefits intended in the CARES Act.
All Americans have been impacted by the COVID-19 pandemic, and your actions in Congress have provided much-needed assistance to millions of struggling businesses.
It is important that you ensure that these same businesses are not also subject to additional and unexpected taxes as they continue to struggle to survive.
Borrowers who are eligible for forgiveness of their PPP loans have spent the funds as the program directed. Unless they are allowed to deduct these expenses, they may be forced to spend additional funds to pay taxes on the loan proceeds – funds they may not have. Passing this legislation as quickly as possible will provide small business owners more certainty as they focus on year-end business planning that is especially important in these challenging economic times.
I ask that you contact your Senate and House leaders to ensure that PPP loan forgiveness deductibility language is passed by Congress before the end of the year.
*Please note that information and guidance on the PPP loan program is changing on a daily basis. The information provided in this article is current as of 11/24/20. It is intended for general informational purposes only. Consult with your financial advisor about your specific situation.