As we had anticipated in our previous posts, the IRS has changed its position in 2020-32 guidance.
On January 6, 2021, the IRS released Revenue Ruling 2021-02 which confirms the deductibility of eligible PPP expenses.
As mentioned by the IRS, the new ruling “…reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on December 27, 2020.”
Link IRS – https://www.irs.gov/newsroom/eligible-paycheck-protection-program-expenses-now-deductible
