COVID-19 > Taxation

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    1. Do PPP Loans count as taxable income?

    One benefit of the PPP Loans is that they are forgivable if the borrower meets certain criteria, and per the IRS (Notice 2020-32), the amount that is forgiven is not included in taxable income; however, because it is not included as taxable income, any expenses paid with forgiven loan proceeds are not tax deductible.


    1. Have payroll and excise tax deadlines been extended?

    ​No.  Per the IRS website, payroll tax payment and report filing due dates have not been extended.


    1. Explain the Employee Retention Credits available through the CARES Act.

    UPDATE:  The Consolidated Appropriations Act, 2021, (CAA), signed into law on December 27, 2020, made some significant changes to Employee Retention Credits (ERC).  One major update is that employers who have received a Paycheck Protection Program (PPP) loan may also receive ERC, which had not been allowed under the previous rules.  This change is retroactive to the law’s effective date last March, which is good news for many employers, but there are some complexities to carefully consider.  Please see our article for a summary of changes to ERC brought by the CAA, starting with a brief overview of ERC, eligibility requirements, changes regarding PPP, and an explanation of how to claim credits: Employee Retention Credits Enhanced by Stimulus Package




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