Maynard Cooper Gale – On April 30, the Internal Revenue Service released Notice 2020-32 clarifying the IRS’s position with respect to the deductibility of certain expenses paid using loan proceeds received under the CARES Act’s Paycheck Protection Program. The recent IRS Notice confirms that no deductions will be permitted for otherwise deductible expenses to the extent such expenses are paid utilizing PPP loan proceeds that are ultimately forgiven and excluded from gross income under Section 1106(i) of the CARES Act.
