The Paycheck Protection Program (PPP) has gone through several changes since it was first enacted to help small businesses impacted by COVID-19 shutdowns. Aaron Frazier, Director of Healthcare and Tax Policy at the National Restaurant Association, offers timely tips on the PPP and loan forgiveness in the video below.
When Congress created PPP, its intent was for business expenses paid by PPP to be tax-deductible. However, guidance from the IRS says that expenses paid for with a forgiven loan are now taxable.
Take action now to help protect restaurants from surprise tax liabilities!
Restaurants across the country may soon face surprise tax liability when they can least afford it. Some restaurants have indicated that this surprise tax liability could be the final factor that causes them to close. Congress must make business expenses paid for by PPP tax-deductible.
Congress needs to hear from restaurants now. Negotiations are ongoing for this final relief package and time is of the essence!
Thank you for all that you do for the industry.
Mike Whatley
Vice President of State Affairs and Grassroots Advocacy
National Restaurant Association
Info is taken from an email from:
National Restaurant Association
2055 L St. NW, Suite 700
Washington, DC 20036
