Take Action: The Small Business Expense Protection Act
NCBA is offering an easy to use tool to advocate on behalf of small businesses.
Many law firms took advantage of the PPP loans to help keep their practices viable during a year no one could see coming. While Congress clarified that the forgiveness of these loans established under the CARES act would be deemed tax-free, it is not clear if the small businesses that utilized these forgivable loans may deduct related expenses.
The inability to deduct expenses could result in serious tax ramifications further placing burdens on already struggling small businesses. The proposed Small Business Expense Protection Act of 2020 (H.R. 6821 and S. 3612) would rectify the IRS and Department of the Treasury’s directive regarding deductions and provide the relief small businesses desperately need.
Confusion persists whether PPP borrowers can deduct business expenses. In response to its members’ concerns, NCBA is providing a tool to help members communicate their concerns to Congress.