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We hope everyone is staying safe during these trying times. We are proud to have helped our clients, friends, and local economy secure north of $2.2M in SBA stimulus relief during this challenging time. For those of you that received SBA stimulus relief, the IRS issued some guidance today regarding the taxable effects of this relief. nnWe are seeing what we believe to be unnecessary hysteria in reaction to this guidance even among “tax professional” groups. Inevitably, these misinterpretations will most likely make their way to the media outlets. Based on our interpretation of the IRS guidance released today, there is nothing to be concerned about as it relates to this guidance as it follows practical tax principles. nnStandard tax principles follow the rule-of-thumb that every dollar you receive is taxable income unless tax law exempts those receipts from taxable income. Generally, any deductions that are tied to income that tax law exempts from taxable income are not deductible for tax purposes. Hence, zero tax effect - no taxable income and no tax deduction. nnThe CARES Act provided that SBA stimulus relief funds received would be exempt from taxable income if fully forgiven which means that money was spent as required. The IRS guidance issued today simply states, in our opinion, that the money received from the stimulus relief and spent as required is not deductible. Hence, there is a net zero effect - the money you received is exempt from taxable income and not deductible when that money received is spent as required (and, thus, fully forgiven) - net zero effect.nnPlease don’t hesitate to contact us if you have any questions or concerns. We are always happy to help. Y’all stay safe out there! nn***Disclaimer - the views expressed in this post are of our opinion only. This post is not intended as tax advice nor should it be relied upon as such when taking a tax position.***...