Businesses That Got CARES Act Loans Face Surprise Tax Bills | Politics

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Parks said accountants are now informing small business owners of their expected 2020 tax bill. Many, she said, have spent their P3 funds to keep their businesses afloat, and are now facing a tax bill. much higher with species that are long gone. .

“It was a really tough message to get across,” Parks said.

Fischer recently spoke with CPA officials in Nebraska to discuss the issue.

On Tuesday, Matthew Sussis, Fischer’s press secretary, said the senator disagreed with recent IRS guidelines and co-sponsored a bill, the Small Business Expense Protection Act of 2020, which would specify that business expenses paid with a canceled PPP loan can still be deducted from small business taxes.

“Senator Fischer would like to see this law enacted in the next few days,” said Sussis.

Grassley issued a statement last month urging the IRS to reverse its guidelines. “Small businesses need help to maintain their cash flow, not more constraints,” he said.

Gov. Pete Ricketts, according to a spokesperson on Tuesday, is monitoring the situation and awaiting guidance from Congress.

It remains to be seen whether federal lawmakers will make a change in their lame duck session that could run until December 18.

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