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

Nov. 19, 2020, 1:35 AM

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 ...

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