Congressional leaders support deductions for PPP borrowers

The IRS ruling may not be the last word

Get all the latest news on coronavirus and more delivered daily to your inbox.  Sign up here.

Continue Reading Below

Congressional lawmakers are thinking that the Internal Revenue Service may have gotten it wrong when it ruled that borrowers of the Paycheck Protection Program couldn't receive tax deductions on expenses.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

That ruling may not be the last word, according to Forbes.

Lawmakers on Tuesday alerted the Treasury Department that the IRS ignored the intent of the PPP.

The IRS was concerned about a double tax benefit, which according to lawmakers, may not be a bad thing.

FORGIVEN CORONAVIRUS PPP LOAN RECIPIENTS INELIGIBLE FOR TAX DEDUCTIONS

They argue the purpose of the plan was to provide economic and specifically tax benefits to businesses to make it possible to maintain workers.

The group of congressional members is headed by Chuck Grassley and Richard Neal, the chairmen of the top tax committees in the Senate and the House, respectively.

CLICK HERE TO READ MORE ON FOX BUSINESS

PPP loans are largely expected to be allocated toward payroll expenses (75 percent), but the remaining 25 percent can be put toward rent, mortgage interest, utilities and interest on other debt obligations.