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Congressional lawmakers are thinking that the Internal Revenue Service may have gotten it wrong when it ruled that borrowers of the Paycheck Protection Program couldn’t receive tax deductions on expenses.
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That ruling may not be the last word, according to Forbes.
Lawmakers on Tuesday alerted the Treasury Department that the IRS ignored the intent of the PPP.
The IRS was concerned about a double tax benefit, which according to lawmakers, may not be a bad thing.
FORGIVEN CORONAVIRUS PPP LOAN RECIPIENTS INELIGIBLE FOR TAX DEDUCTIONS
They argue the purpose of the plan was to provide economic and specifically tax benefits to businesses to make it possible to maintain workers.
The group of congressional members is headed by Chuck Grassley and Richard Neal, the chairmen of the top tax committees in the Senate and the House, respectively.
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PPP loans are largely expected to be allocated toward payroll expenses (75 percent), but the remaining 25 percent can be put toward rent, mortgage interest, utilities and interest on other debt obligations.
