IRS Issues Guidance that Disallows PPP Deductions and SBA Issues Guidance on PPP Loan Forgiveness Related to Employees that Decline Rehiring

The Internal Revenue Service (IRS) issued guidance clarifying that a deduction is disallowed for expenses for payroll costs, mortgage interest, rent, utilities and other interest on debt obligations to the extent they are being reimbursed by loans forgiven under the Paycheck Protection Program. Get more information here.

The Small Business Administration (SBA) has added question #40 related to PPP loan forgiveness as it relates to employees who decline rehiring. See more here.