By Jennifer Cryder, PICPA COO and executive vice president
Legislation on another economic stimulus package, including a new iteration of the Paycheck Protection Program, known as PPP 2, is expected to pass the U.S. Congress before the end of 2020. CPAs are strongly encouraged to identify business clients who may qualify for these benefits, and to begin contacting them and gathering the necessary information for the loan application process. Just like with the first round of funding, we anticipate clients will look to their CPAs for quick action and advice on this matter.
The Treasury Department and Small Business Administration are expected to move quickly to implement PPP 2, including the creation of the appropriate paperwork, by 2020 year-end. This next economic relief effort is likely to address the tax deductibility of expenses related to forgiven Paycheck Protection Program loans. The PICPA has joined the American Institute of CPAs (AICPA) and more than 500 other organizations urging federal action to pass expense forgiveness legislation to “prevent an avoidable catastrophe for millions of small businesses that, without Congressional action, will face a surprising and, in many cases, insurmountable tax bill next year.” The PICPA will continue to advocate for deductibility at the state level as well, standing ready to reintroduce a bill on this matter when the new Pennsylvania legislative session opens in 2021.
The PICPA continues to post resources to its Coronavirus (COVID-19) web page, including the latest PPP FAQs, and will host a town hall with the AICPA on Jan. 13. Register now for this program, which is free for PICPA members. Additional webinar opportunities are available throughout the next several months.
As PPP 2 gets closer to becoming law, the PICPA will provide more detailed coverage here, in CPA Now, and in our other member resources. Be sure to check back frequently.
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