IRS Tax Clarification - Paycheck Protection Program
NAA has recently signed on to a coalition letter urging congressional members to support legislation that will ensure that recipients of coronavirus assistance through the Paycheck Protection Program (PPP) does not result in unexpected and burdensome tax cost for organizations that complied with the terms of the PPP.
The Treasury Department and Internal Revenue Service (IRS) released guidance clarifying the tax treatment of expenses for the PPP loan. Under this guidance, taxpayers cannot claim a deduction for any, otherwise, deductible expense if the payment of the expense results in forgiveness of the PPP loan. AANC has joined NAA and sent communication to congressional member urging them to support this effort. If you are interested in reaching out to your State Rep, please see the pre-drafted communication here.