Contact your senators and congress members asking them to support legislation to further assist small business.
To our clients and friends:
We remain hopeful that you and everyone close to you are safe and healthy. It’s promising that people in power are discussing ways to safely restart the parts of the economy presently shut down.
Late evening on April 30th, 2020 the IRS released an advance version of Notice 2020-32, interpreting a section of the Internal Revenue Code (§265) as strictly prohibiting the deduction of expenses reimbursed by forgiven PPP loan proceeds. We cannot disagree with the notice, as the Code and case law are strong and specific in this area.
We urge you to support the only avenue we see that would afford a business the opportunity to earn an additional cash boost by deducting the expenses without recognizing the PPP forgiveness as income. Congress enacted §265 and Congress can create an exception that would apply to PPP forgiveness only.
If you believe, as we do, that the intent of Congress in the CARES Act was to allow the deduction of PPP-reimbursed expenses, call, write and email your senators and congress members asking them to support legislation to further assist small business.
This website lists all the members of both the House and the Senate. It’s easy to find the representative from each state by selecting your state from the criteria on the left side of the page.
https://www.congress.gov/members?q=%7B%22congress%22%3A116%7D
These are the US senators from Pennsylvania:
Casey, Robert P., Jr. – (D – PA)
393 Russell Senate Office Building, Washington DC 20510
(202) 224-6324 | www.casey.senate.gov/contact/
Toomey, Patrick J. – (R – PA)
Class III
248 Russell Senate Office Building, Washington DC 20510
(202) 224-4254 | www.toomey.senate.gov/?p=contact
……………………………………………………………………
We suggest wording like below (an example for owners of small businesses).
Additional specific information is also helpful.
……………………………………………………………………
Dear __________________
I am the/an owner of a small business with X employees and my livelihood as well as theirs is threatened by the shutdowns in my area as well as across the nation. If the Internal Revenue Code, specifically Section 265, were amended to permit the deduction of expenses reimbursed by the Paycheck Protection Program enacted as part of the CARES Act, it would provide very important additional support to me and all my peers in the world of small business. Please note that this additional help would not add any effort or expenditure on the part of the government, as the means of monitoring and enforcing the tax code already exists.
Thank you for your support of us, the job creators, as we work our way through this crisis.
Sincerely,
Your name & business
……………………………………………………………………
Please stay safe & remember, we are here to answer questions and work though the complexities of all these programs with you. Don’t hesitate to call!
Werner & Co. CPAs, PC
