IRS Introduces Revenue Ruling 2020-27 & Revenue Procedure 2020-51
The IRS recently dropped Revenue Ruling 2020-27 and Revenue Procedure 2020-51, which impacts the deductibility of expenses related to Paycheck Protection Program (PPP) loan funds.
Revenue Ruling 2020-27 is very clear on what the IRS position is regarding the deductibility of expenses, and provides two examples to help taxpayers make sense of their position.
Revenue Ruling 2020-51 provides a safe harbor for certain PPP participants whose loan forgiveness has been partially or fully denied, or who have decided to forego requesting loan forgiveness, to claim a deduction for certain otherwise deductible eligible payments.
For clarity and convenience, we have pulled together a whitepaper that provides readers with an overview of what the IRS ruling states as well as the actual IRS language, formatted for clarity. You can download this whitepaper just by filling out the form below.
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IRS Issues Guidance That Impacts Deductibility Of Expenses Related To PPP Loan Funds
New PPP Webinar Announced
The Rea & Associates’ PPP Task Force has just announced a new hour-long webinar. At this time, presenters will dive into the PPP loan forgiveness application process, the necessity form, and tax treatment.
Check out Rea & Associates’ COVID-19 Resource Center For Employers for additional guidance in the areas of financial assistance, human resources guidance, re-opening, and more.
As always, if you have questions about these two rulings and how they impact your particular situation, please reach out to a member of the Rea & Associates PPP Task Force or your dedicated Rea professional. Otherwise, give us a call at 330.339.6661.