Guidance on IRS Notice 2020-32

From Notice 2020-32: “This notice clarifies that no deduction is allowed under the Internal Revenue Code (Code) for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, 134 Stat. 281, 286-93 (March 27, 2020) and the income associated with the forgiveness is excluded from gross income for purposes of the Code pursuant to section 1106(i) of the CARES Act.” When the Payroll Protection Program was put into place a few months ago, there were some gray areas in regards to deducting expenses paid for my PPP loans. The IRS released Notice 2020-32 … Read More