The recent IRS Notice 2020-32 clarifies that no tax deduction is allowed for payments for eligible PPP loan expenses to the extent these expenses result in PPP loan forgiveness because the PPP loan forgiveness will not be taxable income. This means that the PPP loan forgiveness will result in a net-zero tax effect for the borrower.

We are continuing to monitor information coming from the SBA and Treasury concerning any new guidelines and/or clarifications and will continue to communicate this information to you.  If you have any questions, please email our PPP group at or contact your JMF accountant.