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IRS Green Lights PPP Deductibility After Congress Forces Reversal

Jan. 6, 2021, 4:36 PM

Businesses can now deduct expenses paid for with the proceeds of a forgiven pandemic relief loan, the IRS said.

The IRS, in guidance issued Wednesday, reversed its original position that prohibited businesses with Paycheck Protection Program loans from “double-dipping” by paying expenses with a forgivable loan, then writing off those expenses. Congress, in the latest virus relief bill, explicitly stated that such expenses were deductible, forcing the IRS to flip.

  • Read the revenue ruling here.
  • PPP facilitated hundreds of billions in government-backed, forgivable loans to help struggling businesses keep their workers employed during the pandemic. The ...

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