RP-2021-20: Safe Harbor for certain taxpayers that received a loan pursuant to the Paycheck Protection Program

Internal Revenue Service (IRS) sent this bulletin at 04/22/2021 10:58 AM EDT

IRS GuideWire

April 22, 2021

News Essentials

IRS Resources

Compliance & Enforcement

Contact My Local Office

Filing Options

Forms & Instructions

Frequently Asked Questions

News

Taxpayer Advocate

Where to File

Issue Number: RP-2021-20

Inside This Issue

Revenue Procedure 2021-20 provides a safe harbor for certain taxpayers that received a loan pursuant to the Paycheck Protection Program (PPP) and, based on guidance issued by the Treasury Department and the IRS prior to the enactment of the COVID-related Tax Relief Act of 2020, did not deduct certain otherwise deductible expenses paid or incurred during the taxpayer’s taxable year(s) ending after March 26, 2020, and on or before December 31, 2020. Under the safe harbor, these taxpayers may deduct the expenses in the immediately subsequent taxable year. This revenue procedure also obsoletes Revenue Procedure 2020-51.

Revenue Procedure 2021-20 will appear in IRB 2021-19, issued on May 10, 2021.

Thank you for subscribing to IRS GuideWire, an IRS e-mail service. If you are a Tax Professional and have a specific concern about your tax situation, call the IRS Practitioner Priority Service 1-866-860-4259.

This message was distributed automatically from the IRS GuideWire mailing list. Please Do Not Reply To This Message.

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).