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All information is based on our current understanding as of the date that it is posted. Please keep in mind this information is changing rapidly – it can and likely will change. Some information becomes outdated the same date it posted. Although we will monitor and update this page as new information becomes available, please do not rely solely on this page. We encourage you to contact your Kernutt Stokes advisor for the latest information.

The IRS recently issued guidance regarding the timing of non-deductible expenses related to Paycheck Protection Program (PPP) loans in Revenue Ruling 2020-27.

Included in the guidance is that eligible expenses used or to be used to obtain loan forgiveness will be non-deductible in the year the taxpayer reasonably expects to be reimbursed in the way of PPP loan forgiveness whether or not the loan is forgiven in 2020 or 2021.

It is important to note that members of the Senate Finance Committee did not support the guidance so it is possible that changes may be made to the guidance. 

For further details, click here to read the IRS guidance in full.

The information and tips noted above are intended as general guidelines only. The provisions within the CARES Act are complicated with many questions still unanswered. Every client situation is unique and ideas expressed in this article should not be considered a substitute for professional advice. Opinions expressed in this article are subject to change as interpretations are clarified and additional guidance is issued. Please call our office if you have questions regarding the CARES Act or any other recent legislation.