The US Treasury Department is urging businesses who received a PPP loan to file for loan forgiveness in the wake of a ruling clarifying the tax treatment of expenses paid for with PPP money. Since businesses are not taxed on the proceeds of a forgiven PPP loan, the Treasury Dept ruled that expenses paid from forgiveness loan proceeds are not deductible. If a business ‘reasonably believes’ their loan will be forgiven at some point in the future, the expenses related to the loan are not tax-deductible even if the business has not yet had their loan forgiven or even filed for forgiveness.