OSCPA staff report
A bipartisan group of freshman members of Congress this week joined a chorus that includes the accounting profession in calling for the deductibility of Paycheck Protection Program loans.
U.S. Rep. Anthony Gonzalez, R-Rocky River, along with Rep. Lizzie Fletcher, D-Texas, and more than 50 bipartisan freshman colleagues on Monday sent a letter to House leadership in support of making forgiven Paycheck Protection Program loans for small businesses tax-deductible.
It’s a position strongly supported by the accounting profession. The Ohio Society of CPAs has joined the AICPA in encouraging members to ask their representatives to pass legislation to address the issue.
The IRS recently issued guidance that disallowed the deductibility of forgiven PPP loan expenses, thus creating an unnecessary burden for small businesses. This guidance was also issued after the majority of PPP loans were applied for and approved, so there was no warning for businesses prior to submitting applications. If this guidance is not reversed it will negatively impact the economy as small businesses are already struggling to stay open.
“It is pivotal that we do not increase the burden on small businesses that have already struggled financially during this pandemic,” said Rep. Gonzalez. “This bipartisan message shows America’s small businesses that we support them, and we will not saddle them with additional expenses during the time of their greatest need.”
Other veteran Ohio representatives supporting the supporting the legislation so far include Bob Gibbs, R-7th District, Tim Ryan, D-13, Steve Stivers, R-15, Brad Wenstrup, R-2, Steve Chabot, R-1, Joyce Beatty, D-3, Bob Latta, R-5, Bill Johnson, R-6, Troy Balderson, R-12, and David Joyce, R-14.
It’s important to pass this legislation now to allow small businesses to plan for 2021. As we all know, this year has led many into challenging economic times and this is one thing we can do to reduce financial strain on businesses in our community.
Contact lawmakers now to support PPP deductibility.