Just yesterday, the Treasury and the IRS issued Rev. Rul. 2020-27 and Rev Proc. 2020-51 to (1) reiterate its position on the disallowance of expenses that are otherwise deductible but which the taxpayer reasonably expects to be forgiven under PPP and (2) provide safe harbors and procedures for unforgiven expenses to be deducted.

Today, Senate Finance Committee leadership issued a statement to criticize the Treasury for issuing guidance that is contrary to Congress' intent and request that the position be reconsidered (https://thehill.com/policy/finance/526786-grassley-wyden-criticize-treasury-guidance-concerning-ppp-...)

With the Treasury relying on what is in the CARES Act, let's hope the bipartisan Small Business Expense Perfection Act (https://www.congress.gov/bill/116th-congress/senate-bill/3612/text) will get some traction to add the much needed texts to realign the letter with the spirit of the law.