Great Tax News For PPP Loan Recipients Facing Tax On Forgiven LoansDecember 29, 2020
Really good news for PPP borrowers – the forgiven and those businesses yet to be forgiven.
Thanks to the urging from a coalition of more than 500 trade associations, Congress helped to prevent an avoidable catastrophe for millions of small businesses, according to MSN Money. PPP load recipients were facing a nasty surprise come tax time; a surprise that was averted due to this relief.
While the IRS had published tax guidelines earlier in the year that would have resulted in PPP borrowers paying income tax on forgiven federal loans, Congress has provided much anticipated relief.
As confirmed by Treasury Secretary Steven Mnuchin on CNBC on December 21st, the new COVID stimulus package will allow PPP borrowers to take tax deductions for covered business expenses, with Congress also earmarking $284 billion for forgivable loans through the Paycheck Protection Program.
We have found that FORTUNE Magazine has done a terrific job in explaining the predicament and the ‘nasty surprise’ that PPP borrowers were facing. This article in particular lays it all out, with links to related information. See it here.
Good news, indeed! We are here if you have any questions about your PPP tax obligations. Call us at 606-881-8185 or email us at firstname.lastname@example.org