Representatives Drew Ferguson (R-Ga.), released the following statement after the Internal Revenue Service (IRS) ruled that Paycheck Protection Program loans are ineligible to deduct from small business tax filings:
“In order to help small businesses keep their doors open during the unprecedented global pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act which put in place the Paycheck Protection Program. This legislation brought financial relief to vulnerable small businesses to assist them through this troubling time. Congress’s goal was to lift up businesses by allowing these PPP loans to be forgivable if business owners retained their workforce. The program has been a major success in preventing many small businesses from permanently shutting their doors.
The intent of Congress under the CARES Act was to provide financial support and flexibility to businesses and job creators to weather this unpredictable economic storm. That is why in May I joined my colleague Rep. George Holding (R-NC) as an original co-sponsor of H.R.6821, the Small Business Expense Protection Act of 2020. This bill would amend the CARES Act to allow ordinary business expenses purchased with PPP funds to still qualify for the standard business tax deductions.
Unfortunately, the ruling from the IRS last week to make funds from the Paycheck Protection Program ineligible for standard business tax deductions undermines the objective of the program. When so many workers and small businesses are scrapping to get from one day to the next, this bureaucratic interpretation of the law does not go far enough to assist American workers and businesses fighting to survive. It is now up to Congress to ensure a legislative solution to this problem impacting American businesses.”
Original source can be found here.
