In Notice 2020-32, the IRS answered one of the previously open questions for recipients of loans under the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), namely whether businesses may deduct payroll costs and other eligible expenses funded with the proceeds of a PPP loan that is ultimately forgiven. To the detriment of struggling businesses, the IRS announced its position that such deductions are not allowed under existing federal income tax law. Continue reading >