Update on Tax Deductions Related to PPP Loan Forgiveness

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Today, the IRS issued Revenue Ruling 2020-27 and Revenue Procedure 2020-51. Particular problems will arise in handling situations where it is expected that the PPP loan will be forgiven, but that forgiveness has not yet occurred, by the end of the year (Dec. 31). Also, for taxpayers with fiscal years that have already ended, yikes!

I also found out that the AICPA and about 80 other organizations have sent a letter to four members of Congress offering comments and suggestions on SBA Form 3509. These letters were sent to House Representatives Nancy Pelosi and Kevin McCarthy, Senators Mitch McConnell and Charles Schumer and also to Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza.

Here are the links to IRS documents … Revenue Ruling 2020-27: https://www.irs.gov/pub/irs-drop/rr-20-27.pdf and Revenue Procedure 2020-51: https://www.irs.gov/pub/irs-drop/rp-20-51.pdf

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