This week, the Airforwarders Association was asked to participate in a
coalition of concerned organizations opposing
recent Internal Revenue Service guidance
dictating that expenses related to forgivable loans through the Paycheck Protection Program (PPP) will not be taxable. These expenses include costs of doing business including payroll, utilities and rent which are typically deductible but will not if paid for with PPP funds.
The impact of this guidance means that members who took PPP money could face a higher tax bill. We believe that this IRS interpretation is not only controversial, but falls out of the initial intent of the PPP when passed by Congress.
Many Airforwarders Association members have received PPP loans in an effort to help their businesses survive during the COVID-19 pandemic and we will continue to monitor and vigorously oppose this unexpected and unwelcome change.