Insights

MPL General Counsel Corner – Good Old-Fashioned Political Pissing Match

May 08, 2020

The great debate over the deductibility of the PPP related expenses rages on.  After the IRS issued guidance last week related to this topic, business owners were left further confused about whether PPP funds, if properly used, were fully forgivable or not.

It appears this frustration has bubbled up to Congress as top tax writers from both sides of the aisle in the House and the Senate have expressed their disapproval and intent to fix it.  Never one to back down from a fight, Secretary Mnuchin doubled down in support of the IRS interpretation

Looks like we have a good old-fashioned pissing match between two branches of the Federal Government.  Let’s hope the small business community does not end up being battered and bruised as a result.

Here are some other things that may be important or relevant for you:

  • PPP Fraud Round 1:  The DOJ announced the first PPP related fraud case yesterday.  I can guarantee you this will not be the last such case.    (thanks to Chad Bumbaugh from Stambaugh Ness for sharing)
  • How do I know if my county/region in PA will be moving into the next reopening phase?  Technically, your region must have 50 new cases or less per 100,000 people for 14 days to move into the next reopening phase.  However, after an exhaustive search, it has been tough to find the data on the PA Government websites to show this trend.
  • Updated PPP FAQ (Questions 43 & 44):
    • Question #43 extended the “return the funds” due date to 5/14 for those companies that may be uncertain if they comply with good faith certification.  They are also intending to release additional guidance on how it will look at these good faith certifications prior to the 5/14 date. Lets hope they stick to this commitment.
    • Question #44 clarified the accounting for employees of international companies in relation to the PPP application.
  • New PPP Interim Final Rule on non-discrimination and student employees was also released.  While its nice they are clarifying these issues, the big one we are all waiting for is on forgiveness guidance.
  • NJ Governor says there is no timetable to reopen NJ Coronavirus lockdowns…..whether you like it or not!   As much frustration as I hear about PA’s plans, I am glad this tone is not being used here….yet.
  • Upcoming Webinars and Helpful Resources

Please see all of our prior updates at the this link or if you would like to be added to our email list, please click here

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com) or anyone in our office with questions or comments.  

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