Mnuchin backs IRS on coronavirus PPP loan tax break denial, ‘basically tax 101’

U.S. Treasury Secretary Steven Mnuchin has backed a recent, controversial IRS ruling that expenses paid for with the forgivable Paycheck Protection Program loans are not tax-deductible.

Mnuchin told FOX Business’ Maria Bartiromo this week that he has reviewed the issue personally and that the guidance is correct, saying it’s “basically tax 101.”

“The money coming in the PPP is not taxable,” Mnuchin said. “So if the money that’s coming is not taxable, you can’t double-dip, you can’t say you’re going to get deductions for workers that you didn’t pay for.”