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NWRA URGES CONGRESSIONAL LEADERS TO FIX IRS RULING ON TAXABILITY OF PPP LOANS

Friday, May 8, 2020   (0 Comments)
Posted by: Brandon Wright
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FOR IMMEDIATE RELEASE

May 8, 2020  

NWRA URGES CONGRESSIONAL LEADERS TO FIX IRS RULING ON TAXABILITY OF PPP LOANS

IRS Notice Would Increase Tax Liability of PPP Loan Recipients

 

Arlington, VA – The National Waste & Recycling Association (NWRA) joined other associations on a letter that called upon Ways and Means Chairman Richard Neal (D-MA) and Senate Finance Chairman Charles Grassley to address concerns that a recent Notice issued by the Internal Revenue Service (IRS) would no longer permit funds from the Paycheck Protection Program (PPP) to be tax deductible. For C-Corporations, that means an increase in the net after tax liability of PPP loan forgiveness by as much as 21 percent. For pass-through businesses, such as S Corporations, the marginal increase could be as high as 37 percent.

 

“The PPP has emerged as an essential lifeline for struggling small business owners as they deal with mandated shutdowns or slowdowns from different levels of government.The impact of the latest IRS ruling is significant. The effect will be to substantially increase the tax liability of PPP loan recipients at the worst possible time,” said NWRA President and CEO Darrell Smith. “It is imperative that the rescue measures enacted by Congress, including PPP loans, provide the maximum amount of flexibility to employers that they can.”

 

NWRA believes the IRS decision is contrary to what Congress intended when it passed the CARES Act. More than 150 trade organizations joined NWRA on the letter.

 

 

 

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ABOUT NWRA

The National Waste & Recycling Association represents the private sector waste and recycling services industry. Association members conduct business in all 50 states, and include companies that manage waste, recycling and medical waste, equipment manufacturers and distributors, and a variety of other service providers. For more information about NWRA, please visit  www.wasterecycling.org.

 

Contact:

Brandon Wright

National Waste and Recycling Association

bwright@wasterecycling.org

202-364-3706