IRS Allows 2020 PPP Loan Recipients to Get Retention Credit (1)

March 1, 2021, 9:36 PM; Updated: March 1, 2021, 10:59 PM

Businesses that received a PPP loan in 2020 can now formally receive a tax credit for keeping employees on payroll, the IRS announced Monday.

The IRS issued guidance (Notice 2021-20) clarifying that businesses with forgiven Paycheck Protection Program loans can still claim the employee retention credit meant to encourage businesses to keep employees on their payroll, as directed by the newest pandemic relief law signed in December.

But for new loans made in 2021, the agency said it plans to release additional guidance for the new round of funding, which opened on Jan. 11.

The American Institute...

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