IRS Notice Clarifies PPP Loan Forgiveness
Filed under:Affordable Housing, Construction, COVID Updates, Dental, Family Business, FQHC, Healthcare, Nonprofit, Private Companies, Small Business Services
On April 30th, the IRS issued Notice 2020-32 which clarifies a concern many had in regard to the PPP loan forgiveness. The notice denies a deduction for payroll, rent, and utilities if those expenses are paid with PPP funds that are ultimately forgiven under the CARES Act.
If you have received PPP funds, this notice will emphasize the importance for accurate accounting of the use of the PPP funds. It will also be important that you consult with your tax advisor for the impact of this notice on your income tax and the use of PPP funds.