Companies With Forgiven PPP Loans Can’t Get Tax Breaks, IRS Says

The Internal Revenue Service is doubling down on its stance that businesses that manage to get their Paycheck Protection Program loans forgiven don’t qualify for some valuable tax write-offs, according to agency guidance.

Companies that have received loan forgiveness or have a reasonable expectation that the government won’t require them to pay back the money can’t deduct the business expenses paid for by the loan, the IRS said Tuesday. The guidance affirms a position the agency took in April that has been criticized by both Democrats and Republicans.

The IRS said businesses that don’t get their debts forgiven can still ...