IRS Confirms PPP Expenses are Deductible in Rev. Rul. 2021-2

January 8, 2021

On January 6, 2021 the IRS released Rev. Rul. 2021-2 which implements the provision of Consolidated Appropriations Act, 2021 allowing taxpayers to deduct otherwise deductible expenses, the payment of which results in, or are expected to result in, the forgiveness of a loan under the Paycheck Protection Program (PPP).

Prior to the enactment of the Consolidated Appropriations Act, 2021, on December 27, 2020, the IRS had taken the position, in Notice 2020-32 and Rev. Rul. 2020-27, that otherwise deductible expenses may not be deducted if such expenses result in, or are expected to result in, the forgiveness of a PPP loan. Rev. Rul. 2021-2 declares obsolete the prior guidance provided by Notice 2020-32 and Rev. Rul. 2020-27.

Please contact your Mazars LLP professional for additional information.

RYAN VAUGHAN
PARTNER
+1 815.418.2486
ryan.vaughan@mazarsusa.com

JESSE SIROTKIN
MANAGER
+1 212.375.6655
jesse.sirotkin@mazarsusa.com

 



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The information provided here is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.

Mazars USA LLP is an independent member firm of Mazars Group.


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Disclaimer of Liability

The information provided here is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.

Mazars USA LLP is an independent member firm of Mazars Group.







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