Tell Congress: Stop the Surprise PPP Tax Liability
Did you know that restaurant operators who had Protection Program (PPP) loans forgiven may lose some key tax deductions, creating a surprise tax liability? And that the majority of restaurants might not be eligible for a new round of PPP funding? These two critical issues are why you need to take action now to protect restaurants from a surprise tax liability.
As Congress tries to move towards agreement on a final COVID relief package, plans have emerged for a new round of PPP funding that would require businesses to demonstrate a 50% loss of revenue. According to recently released data, 55% of restaurants that are losing money would not be eligible for this new funding! Congress must fix the legislation to ensure that more restaurants—the hardest hit businesses by the COVID-19 pandemic—are eligible.
When Congress created PPP, its intent was for business expenses paid by PPP to be tax deductible. However, guidance from the IRS says that expenses paid for with a forgiven loan are now taxable.
Negotiations are ongoing for this final relief package and time is of the essence. Take action now to help protect restaurants from surprise tax liabilities!
Last week our voices were heard and the House of Representatives passed a bipartisan bill fixing the Paycheck Protection Program (PPP).
The Senate is poised to act on this bill, possibly as soon as tomorrow. But, if a single Senator objects, the Senate will have to spend days debating it before a roll call vote is allowed. That delay is too much for many of our nation’s restaurants struggling to make their PPP loans work for them.
This bill makes critical fixes to the PPP program including:
Please click the button below to contact your Senators and make your voice heard
Attached are the draft guidelines for reopening lodging and restaurant businesses. There are a few items of great concern that we are opposed to and suspect you will be as well. We encourage you to send an email to the full task force explaining why the various provisions do not work for your business.
Responses can be sent to firstname.lastname@example.org.
We also encourage you to call in during the following public comment calls to express your concerns:
Thursday, April 30: 1:00pm - 3:00pm (Public Comments)
Friday, May 1: 9:00am - 11:00am (Public Comments)
Call-in: 1-800-356-8278 or 1-857-444-0744
Pin: 194499 or 600744 or 125563