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Showing posts from April, 2021

IRS Releases Guidance on Retroactive Tax Deductions for PPP Recipients

A huge advocacy win for the HUBZone Contractors National Council, GovEvolve, and Montgomery County Chamber of Commerce (MCCC) - as well as entire small business community - with today's announcement of IRS  Paycheck Protection Program (PPP)  guidance reversal.  On April 22, the IRS issued guidance  ( Revenue Procedure 2021-20 ) regarding retroactive tax deductions for businesses or individuals that received forgiveness on a PPP loan but did not deduct any of the original eligible business expenses because they adhered to former guidance, issued before the enactment of tax relief legislation in December of 2020. This new guidance allows business with forgiven loans to retroactively deduct those expenses, no longer considering it a “doubt credit.” Taxpayers have the option to deduct these expenses in the subsequent tax year if they do not wish to amend a return or make an administrative adjustment request.  Small businesses who relied on economic support from the CARES Act to weather