Companies Receiving CARES Act Loans Face Surprising Tax Bills |

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“It was really difficult news to deliver,” said Parks.

Fischer recently spoke to Nebraska CPA officials to discuss the issue.

On Tuesday, Matthew Sussis, press secretary for Fischer, said the senator disagreed with recent IRS guidelines and co-funded a bill, the Small Business Expense Protection Act of 2020, that would make it clear that business expenses are paid for with an issued PPP loan can still be deducted from the small business tax.

“Sen. Fischer wants this law to be passed in the coming days, ”said Sussis.

Grassley issued a statement last month calling on the IRS to repeal its guidelines. “Small businesses need help maintaining their cash flow, not more burdens,” he said.

Governor Pete Ricketts is watching the situation Tuesday and awaiting instructions from Congress, according to a spokesman on Tuesday.

The Greater Omaha Chamber of Commerce is also calling for congressional action.

David Brown, president and CEO of the chamber, said thousands of small businesses received PPP loans with the expectation that the aid would not be taxed.

“Understandably, the news of a 37% tax hike is a burden for some that we hope our elected officials can solve,” Brown said.

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