News
NECA Signs a Letter Urging Congress to Take Action on PPP Loan Forgiveness
Dec 3, 2020
NECA and a coalition of organizations have signed a letter urging Congress to enact legislation before the end of the year that includes a technical correction addressing the tax treatment of loan forgiveness under the Paycheck Protection Program (PPP).
The CARES Act clearly stated that any portion of a Paycheck Protection Program (PPP) loan that qualified for loan forgiveness "shall be excluded from gross income" for tax purposes. In contradiction to Congressional intent, the IRS issued Notice 2020-32, which specified that "no deduction is allowed under the Internal Revenue Code…if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the [CARES Act].”
NECA encourages you to Take Action and tell your Representative to act before the end of the year to ensure PPP loan forgiveness is not considered taxable income.
The CARES Act clearly stated that any portion of a Paycheck Protection Program (PPP) loan that qualified for loan forgiveness "shall be excluded from gross income" for tax purposes. In contradiction to Congressional intent, the IRS issued Notice 2020-32, which specified that "no deduction is allowed under the Internal Revenue Code…if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the [CARES Act].”
NECA encourages you to Take Action and tell your Representative to act before the end of the year to ensure PPP loan forgiveness is not considered taxable income.