Paycheck Protection Program
IRS Notice 20-32

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides a number of economic relief provisions for individuals and businesses affected by COVID-19. The Paycheck Protection Program (Program) is one of the most significant relief opportunities under this Act. On April 30, 2020, the Internal Revenue Service (IRS) issued Notice 2020-32 (Notice), which provides guidance on Federal income tax deductibility of expenses incurred and forgiven under the Program.
Are expenses incurred under the Program deductible for Federal income tax purposes?
The IRS issued the Notice to provide clarification to taxpayers who borrow funds under the Program on whether or not expenses incurred during the eight week period will be deductible for Federal income tax purposes. The Notice clarifies that “ no deduction is allowed under the Internal Revenue Code for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan” under the Program.
For more financial and tax information, go to our COVID-19 Resource Center or email us at .