IRS Provides Safe Harbor To Deduct Certain 2020 PPP Related Expenses In 2021

Before enactment of the 2021 Consolidated Appropriations Act on December 27, 2020, the Internal Revenue Service took the position that taxpayers could not deduct expenses paid with proceeds of a forgiven PPP loan. By passage of the Consolidated Appropriations Act, Congress reversed this position. The Internal Revenue Service now has announced a safe harbor in Revenue Procedure 2021-20 that will permit certain taxpayers an election to deduct in 2021 expenses paid with proceeds of a forgiven PPP...
By: McGlinchey Stafford

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