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