In March, President Trump signed the CARES Act into law, which included the Paycheck Protection Program (PPP). Congressional intent of the CARES Act was to allow for continued payroll deductibility, even for the amount forgiven under the PPP loan program. However, the IRS later issued a notice that the forgiven PPP loan amounts are not deductible as it would result in a so-called “double tax benefit.”
Since then, Western Growers and other organizations have pushed Congress to fix this important issue through legislation that would uphold congressional intent. Today, we signed on to a business coalition letter calling on Congress to fix this tax issue before the end of the year. We will continue to update our members as we work to resolve this matter.
Please contact Jonathan Sarager at email@example.com if you have additional questions or concerns.