I have a C Corp whose fiscal year ends June 30. How do I report the PPP loan forgiveness if granted by filing date?
I assume I reduce Wage, Utilities, and Rent expense. However, the Wage expense will not reconcile with the 941. Would I even care if it doesn't?
If the loan is forgiven after I file, do I need to amend or apply in the new fiscal year?
As the return isn't even DUE for months, I'd wait & see what happens.
There's a lot of discussion that the IRS dictate that forgiveness means the expenses aren't deductible will be overridden.
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LET’S SEE WHAT DEVELOPS: Any final decisions on the PPP deduction issue is probably a ways off, but Sen. John Cornyn (R-Texas) is looking to push the envelope.
Cornyn, a senior Finance Committee member, told Jad Chamseddine of Tax Notes that he hoped to get unanimous consent in the Senate this week for a measure, S. 3612 (116), to allow companies to deduct expenses paid for by PPP loans.
To pull that off, Cornyn and other supporters would need to get rid of any remaining holds on the bill by today, which will cap off the Senate’s week in Washington. Cornyn told Tax Notes early in the week that supporters were “chipping away” at holds. But as of Wednesday, Cornyn’s office told Morning Tax that allowing the legislation to go forward still didn’t have unanimous support in the Senate.
Both Finance Chair Chuck Grassley (R-Iowa) and Sen. Ron Wyden of Oregon, the top Democrat on Finance, are sponsors of the PPP deduction bill, and also argue that Congress intended to allow businesses to benefit both from the loans and the tax write-offs to boost the economy. But their spokespersons largely deferred to Cornyn and his team on this week’s effort to get the measure through the chamber.
Getting a measure passed in the Senate by unanimous consent would certainly seem to be a show of force, but any final decision on the PPP deduction issue would also need to get the House and the administration on board. Mnuchin has said that allowing companies to write off expenses bought with PPP loans would be double dipping — backing the IRS, which disallowed those deductions.