Compliance Alert: IRS Provides Guidance on Paycheck Protection Program

IRS Notice 2020-32 provides guidance to employers regarding the Federal income tax deductibility of expenses incurred in a taxpayer’s trade or business when the taxpayer receives a covered loan under the Paycheck Protection Program. This notice clarifies that no deduction is allowed under the Internal Revenue Code for an expense that is otherwise deductible if the expense payment results in forgiveness of a covered loan under the CARES Act.

View the full notice here.