The IRS has provided a safe harbor under which certain first-round Paycheck Protection Program (PPP) loan recipients, who filed their 2020 tax returns without deducting certain deductible expenses, may elect to deduct those expenses on their 2021 returns. Under prior guidance, businesses receiving PPP loans to cover payroll costs, interest on covered mortgage obligations, covered rent obligation payments, and covered utility payments couldn’t deduct corresponding expenses. However, with the enactment of the Consolidated Appropriations Act, eligible businesses may now claim these deductions. Contact us for more information. (IRS Rev. Proc. 2021-20) © 2021