Washington, D.C. (December 21, 2020) – The American Institute of CPAs (AICPA) president and CEO, Barry Melancon, CPA, CGMA, made the following statement in response to the COVID-19 Relief Bill, the Consolidated Appropriations Act of 2021:
“Though this has been a long and difficult year for many, we are encouraged by the willingness of our elected officials to come together on behalf of taxpayers and businesses everywhere.
“We are pleased with Congress’ efforts to provide much-needed economic relief to struggling businesses by ensuring expense deductibility under the PPP is honored, as was intended by the CARES Act. CPAs across the country continue to support small businesses and will work with clients to make the most of the intended benefits of the COVID-19 Relief Bill.
“AICPA has strongly advocated for expense deductibility for PPP loan recipients and considers this legislation a success for hardworking small businesses, which are our communities’ economic engines. The COVID-19 Relief Bill gives small business a fighting chance to recover from this global crisis and contribute to the economic stability our nation needs.”
AICPA strongly supports the Consolidated Appropriations Act of 2021 and urges its passage.
Check AICPA’s LinkedIn page to watch video of tonight’s LinkedIn Live with Barry Melancon and CPA.com president and CEO, Erik Asgeirsson, as they discuss the Consolidated Appropriations Act of 2021. Also, AICPA will offer a special Town Hall tomorrow that will include a more in-depth analysis of the bill. For additional information and tools, visit AICPA’s PPP Resource Center.
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 431,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.
- In August, 2020, the AICPA joined a group of more than 170 organizations in a letter to House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Mitch McConnell (R-KY) encouraging a technical correction to address the tax treatment of loan forgiveness under the Paycheck Protection Program.
- In November, 2020, the AICPA called upon its members to ask Congress to pass bipartisan legislation S.3612 and H.R.6821 – the Small Business Expense Protection Acts of 2020, or H.R. 6754 - the Protecting the Paycheck Protection Program Act – that will ensure the receipt and forgiveness of PPP assistance does not result in an unexpected and burdensome tax cost.
- In December, 2020, the AICPA and a coalition of more than 560 organizations representing millions of employers and American workers sent Congressional leaders a letter urging passage of legislation making it clear that expenses related to a forgiven Paycheck Protection Program loan are tax deductible. The letter stated that without legislation, there is “…the specter or a surprise tax increase of up to 37 percent on small businesses when they file their taxes for 2020.”