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Businesses that got CARES Act loans are facing surprise tax bills

Source: https://omaha.com/businesses-that-got-cares-act-loans-are-facing-surprise-tax-bills/article_2265e9de-39b6-11eb-8f87-ef4c281b909d.html - Dec 9, 2020

LINCOLN — Businesses that received federal Paycheck Protection Program loans to help survive the economic fallout from the coronavirus pandemic are facing a cruel surprise — an unexpected tax bill.

While Congress indicated that its intent was that such PPP loans would not create a tax bill, federal tax officials have opined otherwise.

The bottom line is that a company that got a $150,000 PPP loan this spring is now confronted with being required to pay back as much as $63,000 of it in the form of federal and state income taxes and self-employment taxes.

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Category: General Business