Urge lawmakers to reverse course on taxing PPP expenses
Veterinary professionals and veterinary business owners can support our colleagues by asking Congress to pass legislation ensuring that business owners impacted by COVID-19 aren’t penalized by income-tax rules after taking out a loan through the Paycheck Protection Program (PPP).
Despite recent legislation that made improvements to the PPP loan program, PPP borrowers are prohibited from claiming federal tax deductions that are normally fully deductible – including some rent and utility payments, and wages and benefits paid to employees – for forgivable expenses paid with PPP funds. If this isn’t reversed, small business owners could face an unanticipated additional tax burden.
In creating the PPP program, Congress intended to not increase tax liability for small businesses.
On May 7, the AVMA joined over 150 organizations in a letter to Congress urging lawmakers to reverse the prohibition, set out in Internal Revenue Service (IRS) Notice 2020-32.
As the AVMA continues to work with Congress on this issue, the voices of individual veterinary professionals can amplify our message and our impact. There’s bipartisan interest in the House and Senate to address this issue with a legislative fix, and your help is needed to ensure there is enough support to spur action.
It’s easy to help
Visit the AVMA Congressional Advocacy Network (AVMACAN) website to fill out a simple form that will send your senators and representatives a letter asking them to support legislation to fix this issue. It’s a quick and effective way to make your voice heard in Washington on behalf of veterinary medicine.
Policymakers listen to the AVMA because we speak with the combined voice of more than 95,000 members. Your individual voice magnifies the AVMA’s collective voice.
Learn more about PPP
The Paycheck Protection Program offers forgivable loans for small business owners to maintain their workforce and operations during the COVID-19 pandemic. New provisions were approved last week to provide borrowers more flexibility in how and when they spend the funds, and Congress continues to tweak the program.
AVMA’s COVID-19 resource center has additional information on the PPP and other COVID-19 legislative relief provisions, as well as other business and economic resources.
Source: [email protected] Blog
Posted June 12, 2020