Expenses Relating to PPP Forgiveness are Nondeductible
By Evan Gernant
On Thursday, April 30, the IRS issued Notice 2020-32 clarifying that to the extent a Paycheck Protection Program (PPP) loan is forgiven, the associated expenses will be nondeductible for federal tax purposes. The CARES Act made it clear that any amount of forgiveness of a PPP loan would be non-taxable. What was not addressed and left for interpretation was whether the associated expenses would be tax-deductible. Many were hopeful for a better ruling from the IRS...
