On 11/18/2020 the IRS issued Revenue Ruling 2020-27 which indicates that companies that received a PPP loan cannot deduct the related covered expenses like wages if the loan is expected to be forgiven because of the tax benefit rule. This is true even if the loan has not been forgiven by 12/31/2020. Actually no PPP loans have been forgiven yet as far as I know. There only has to be a reasonable expectation of forgiveness at 12/31/2020 which I believe relates to most PPP loans.
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