Category: Year End Compliance
As it stands the forgiveness of your PPP will create non-taxable income, but the business expenditures tied to this forgiveness will not be deductible. This may seem straight forward, but many will have their PPP’s forgiven in 2021 while expenditures were taken in 2020.
Once the PPP forgiveness application is submitted to the bank, the bank has 60 days to process the application and submit to the SBA. When the SBA receives this submission, they have 90 days to respond. If your business were to submit a PPP forgiveness application in December 2020, you potentially may not receive a response on the forgiveness status until May of 2021. The IRS has not yet issued guidance on how they will handle this scenario, but we will continue to keep you updated with guidance as it is published.
Please contact your Kerkering Barberio team member at (941) 365-4617 for strategies in dealing with this known unknown.