Over the last few months, there has been a hot debate surrounding the Paycheck Protection Program (PPP) Loan Forgiveness. The American Institute of CPAs (AICPA) made an official statement in early August following over 170 trade organizations and businesses speaking up. The AICPA joined forces in a letter to Congress, supporting expense write-offs related to loan forgiveness under the PPP.
Letter to Congress Supporting the Reversal of IRS Notice 2020-32
In early August, the AICPA partnered with over 170 organizations including the National Retail Foundation, International Franchise Association, and more in a letter to Congress. The letter addressed Senate Majority Leader, Mitch McConnel, and House Speaker, Nancy Pelosi. In the letter, organizations speak out against the proposed tax treatment of loan forgiveness under the PPP, urging Congress for tax deductions on related expenses.
One of the main goals of this letter to Congress is the reversal of IRS notice 2020-32 that denies PPP loan borrowers from deducting expenses made to qualify them for loan forgiveness. Many believe this IRS notice defeats the purpose of the CARES act by ignoring the positive intentions meant for the struggling public.
AICPA President Voices Strong Support of PPP Loan-Related Expense Write-Offs
In a recent statement, AICPA president, Edward Karl, showed strong support for the reversal of IRS Notice 2020-32:
“Millions of businesses across the country received much-needed relief during a time of global crisis, and it’s imperative that they receive the full measure of assistance intended by Congress. Many small businesses are still in economic distress and we urge members of Congress to take action to ensure that the necessary corrections are included in the next relief package.”
Following the letter to Congress, the AICPA and other involved organizations hope to see the restoration of tax benefits to aid struggling businesses as the CARES act intended.
Hall & Company is also here to help with personal financial consultations to assess how these changes may affect your business.
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