The IRS Chief Counsel’s Office has issued guidance confirming that improperly forgiven Paycheck Protection Program (PPP) loans are considered taxable income. The IRS urges PPP borrowers whose loans were improperly forgiven to file original (or amended) tax returns. The portion of the forgiven loan that doesn’t meet the requirements for forgiveness must be included in income and any additional income tax must be paid. PPP loans were established to help small U.S. businesses adversely affected by the COVID-19 pandemic cover certain expenses. Under the program, lenders can forgive the loans if the borrowers meet certain conditions. For more information: https://bit.ly/3ffx3AE
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