News & Analysis as of

Safe Harbors Business Expenses

Eversheds Sutherland (US) LLP

No harm, no foul: IRS guidance provides path to claim PPP-related deductions for taxpayers who followed its earlier - but now...

The Internal Revenue Service (IRS) recently issued Revenue Procedure 2021-20 (Revenue Procedure), providing guidance for taxpayers who received Paycheck Protection Program (PPP) loans in 2020 but did not deduct all of their...more

Nutter McClennen & Fish LLP

IRS Issues Safe Harbor Regarding Deductibility of Certain Eligible Expenses Paid or Incurred in 2020 by Taxpayers that Received...

If you filed your 2020 tax return prior to December 27, 2020 when the Consolidated Appropriations Act of 2021 (the “CAA”) was enacted and therefore did not deduct certain expenses due to your Paycheck Protection Program...more

McGlinchey Stafford

IRS Provides Safe Harbor To Deduct Certain 2020 PPP Related Expenses In 2021

McGlinchey Stafford on

Before enactment of the 2021 Consolidated Appropriations Act on December 27, 2020, the Internal Revenue Service took the position that taxpayers could not deduct expenses paid with proceeds of a forgiven PPP loan. By passage...more

Snell & Wilmer

IRS Releases Much-Awaited Guidance on PPP-Loan-Related Expenses, But More is Still Needed

Snell & Wilmer on

On November 18, 2020, the Internal Revenue Service ("IRS") clarified its stance on the deductibility of expenses paid or incurred by businessowners who participated in the Paycheck Protection Program (“PPP”) by issuing...more

Farrell Fritz, P.C.

The IRS, Forgiven PPP Loans, And Business Deductions: Once Was A Mistake, Twice Is An Inexcusable Decision

Farrell Fritz, P.C. on

It has been more than eight months since the enactment of the CARES Act, yet here we are, with the end of 2020 in sight, and we are still debating whether taxpayers should be allowed to claim a deduction for business expenses...more

Bracewell LLP

IRS and Treasury Department Release Guidance on the Deductibility of Eligible Expenses under the Paycheck Protection Program

Bracewell LLP on

On November 18, 2020, the IRS and Treasury Department released Revenue Ruling 2020-27 (the Revenue Ruling) stating that, if a taxpayer received a PPP Loan (defined below) and paid or incurred Eligible Expenses (defined...more

Chambliss, Bahner & Stophel, P.C.

IRS Doubles Down: There's No Deduction for Expenses Paid With PPP Loan Fund

The Internal Revenue Service (IRS) previously announced that Paycheck Protection Program (PPP) loan borrowers who receive forgiveness may not take a deduction for the expenses paid with PPP loan proceeds—including wages,...more

Jones Day

President Signs Amendments to Paycheck Protection Program Into Law - Amendments to loan forgiveness period, safe harbors, and...

Jones Day on

The new Paycheck Protection Program Flexibility Act of 2020  ("PPPFA") amends the Paycheck Protection Program ("PPP") created under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act and affects both existing...more

Akin Gump Strauss Hauer & Feld LLP

Senate Clears House-Passed PPP Reform Bill, Sends Measure to President Trump’s Desk

- Both chambers of Congress have passed the Paycheck Protection Program Flexibility Act of 2020. The bill now heads to President Trump’s desk for his signature. - The measure extends the Paycheck Protection Program loan...more

Downey Brand LLP

Senate Passes Paycheck Protection Program Flexibility Act of 2020: What Small Businesses Can Expect

Downey Brand LLP on

In the wake of COVID-19, Congress enacted the Coronvairus Aid, Relief and Economic Security (“CARES”) Act which included the Paycheck Protection Program (“PPP”) designed to help businesses fund payroll and other critical...more

Troutman Pepper

Transaction Cost Deduction Denied - Tax Court Found Finder's Fee Paid By Target Was Not Paid For Benefit Of Target - Tax Update:...

Troutman Pepper on

Plano Molding Co. (target), a manufacturer of plastics, was acquired by Plano Holding, an affiliate of the Ontario Teachers’ Pension Plan Board (buyer), from Tinicum Capital Partners (seller). ...more

Troutman Pepper

Deductibility of Transaction Costs for a Target Company: No Safe Harbor in Deemed Asset Deals

Troutman Pepper on

On June 10, 2016, the Internal Revenue Service released a Chief Counsel Memorandum dated July 8, 2015, addressing the issue of whether a target S-corporation, which participated in a transaction in which the parties made a...more

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