Recently the IRS issued guidance stating that taxpayers must consider expenses paid with PPP funds as non-deductible expenses even if forgiveness applications have not been approved by December 31, 2020 or if forgiveness applications have not been submitted by December 31, 2020.
This guidance has significant tax planning repercussions. All calendar year taxpayers should therefore plan on including PPP funds as income for tax years ending December 31, 2020.
To learn more about this recent announcement, see our Memo here.
If you have questions regarding how this will affect your tax situation, please contact us.