The IRS Is Coming for Your Payroll Protection Loan

by Evil HR Lady on May 15, 2020

So many businesses took out Payroll Protection Plan (PPP) loans that the program’s first tranche maxed out in a few days. Many see this as the only way to save their small businesses. Now, the Internal Revenue Service says it wants a cut. 

Typically, wages are tax-deductible, but for those who use the forgivable portion of a PPP loan to pay employees, those wages will be fully taxable, according to a recent IRS ruling

That’s a significant blow to small businesses. Kiplinger’s laid out what the actual costs will look like:

To keep reading, click here: The IRS Is Coming for Your Payroll Protection Loan

{ 2 comments… read them below or add one }

MariaRose May 15, 2020 at 9:48 pm

I had to read the article twice to fully understand the language of the wording on the PPL from the IRS and the business end. It comes down to the same thing as getting unemployment benefits but on a larger scale. The loan is an income that is taxable, but there’s a credit that can be applied when filing taxes that may forgive (equal out) the taxes owed.
Why can’t they write these tax laws in a language understood by all, not just accountants?

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saf May 19, 2020 at 12:04 am

Any thoughts on how this will apply to churches with PPP funding?

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