The Stunning IRS Ruling That May Bankrupt Small Businesses That Took PPP Loans

“With the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, I finally saw the federal government committing to what I committed to doing for my clients decades ago: help small businesses.

But now I feel betrayed.

Last week, late in the evening, the IRS released guidance that essentially nullified much of the benefit of the Paycheck Protection Program (PPP) created under the CARES Act, by stating that those who receive PPP may not receive tax deductions for using those funds to pay expenses. That includes expenses like payroll and rent, the very point of the PPP.”

→ Learn how the IRS is using federal economic relief payments to increase the tax burden on small businesses at Kiplinger.