• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

BOK Accounting

Now Executive Tax Advisors

  • Services
    • Tax Preparation
    • Tax Planning
  • Help
    • Support
    • Newsletter
  • Resources
    • Templates
    • How To Make Tax Payments
    • Access your IRS Online Account
    • How to get your Portland Business License number
    • Tax Due Dates
    • Individuals
    • Businesses
    • Finance
    • File Retention Guide
  • Our Team
  • Contact Us
  • News
  • Where Is My Refund?
    • Federal
    • Oregon
You are here: Home / coronavirus / IR-2021-04: Eligible Paycheck Protection Program expenses now deductible

IR-2021-04: Eligible Paycheck Protection Program expenses now deductible

posted on January 6, 2021

Eligible Paycheck Protection Program expenses now deductible
 

WASHINGTON – The Treasury Department and the Internal Revenue Service issued guidance today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP).

Today’s guidance, Revenue Ruling 2021-02, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27, 2020.

The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient’s covered loan. This change applies for taxable years ending after March 27, 2020.

Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.

For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov.

Primary Sidebar

Secure Client Portal

login image

Latest News

  • How to Verify How Much Child Tax Credit You Received
  • Newsletter January 2022
  • December 2021 Year-End Tax Information

Proud Member: AICPA

Footer CTA

  • Directions
  • Contact Us
  • (503) 265-8961

© 2023 · BOK Accounting