Forgiven PPP Loans are non-taxable

Working with a coalition of hundreds of associations, the group was able to convince Congress (in the recently passed COVID relief package) to specify that forgiven Paycheck Protection Program (PPP) loans will not be included in taxable income.  It also clarifies that deductions are allowed for expenses paid with proceeds of a forgiven PPP loan, effective as of the date of enactment of the CARES Act and applicable to subsequent PPP loans.  This means the proposed legislation would overturn IRS Notice 2020-32 and Revenue Ruling 2020-27.