U.S. Senator Mike Braun announced his intent to introduce legislation when he returns to Washington to fully protect small businesses from tax liability associated with loans forgiven under the Paycheck Protection Program. The Safeguarding Small Business Act clarifies that there is no tax liability associated with loans forgiven under the Paycheck Protection Program.
On March 27, 2020, President Donald J. Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This Act, which was unanimously approved by the U.S. Senate, established the Paycheck Protection Program to provide small businesses with loans and loan forgiveness designed to keep American workers on the job. While the CARES Act specifically intended for amounts forgiven under the Paycheck Protection Program to be excluded from gross income, guidance issued by the Internal Revenue Service this week does not fully allow all necessary deductions.
