The American Institute of CPAs and a coalition of more than 560 organizations representing millions of employers and American workers on Thursday 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. A letter co-signed by State CPA Societies from all 50 states and four territories has also been sent. While the Coronavirus Aid, Relief and Economic Security Act was designed to provide relief to businesses by allowing the deductibility of expenses related to loan forgiveness, Notice 2020-32, issued by the Internal Revenue Service, directly contradicts this intent, instead transforming tax-free loan forgiveness into taxable income. AICPA has made repeated calls for Congress to fix this problem. The letter states that without legislation, there is “the specter or a surprise tax increase of up to 37% on small businesses when they file their taxes for 2020.” The letter is the third notification about the issue that the AICPA has made to congressional leaders, with previous letters sent in August and November.