GCCA Urges Congress to make PPP Loan Forgiveness Tax Deductible
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On December 9th, GCCA signed a letter to all members of Congress requesting that the over 5 million Paycheck Protection Program loans made to small businesses across the country remain tax deductible. Section 1106(i) in the CARES Act, which excludes forgivable loan assistance from taxable income, has been largely ignored by the Internal Revenue Service (IRS), who released Notice 2020-32 disallowing the deduction of forgiven expenses. GCCA joins others in requesting a fix to clarify that recipients of forgivable PPP loans may continue to claim normal business expense deductions in any end-of-year legislation.
