PPP Shell Company Discovery Act

12/15/2023, 3:55 PM

PPP Shell Company Discovery Act

This bill requires the Internal Revenue Service (IRS) to compile a list of Paycheck Protection Program (PPP) loan recipients whose loans were forgiven under the program.

Additionally, the IRS must compile (1) a list of such loan recipients who did not withhold payroll taxes in 2019, and (2) a list of loan such recipients for which the aggregate amount of PPP loans exceeded four times the greatest amount of wages paid by the recipient during a calendar month in 2019.

The IRS must notify the Department of Justice when the lists are complete.

Bill 118 hr 1476, also known as the PPP Shell Company Discovery Act, is a piece of legislation introduced in the US Congress. The purpose of this bill is to address concerns regarding the Paycheck Protection Program (PPP) and the potential for fraudulent activity by shell companies.

The PPP Shell Company Discovery Act aims to increase transparency and accountability in the PPP loan application process by requiring the Small Business Administration (SBA) to conduct additional checks to identify and prevent fraudulent applications from shell companies. Shell companies are entities that have little to no real business operations and are often used to conceal the true ownership of funds.

Under this bill, the SBA would be required to implement procedures to verify the legitimacy of businesses applying for PPP loans, including conducting background checks on applicants and cross-referencing information with other government databases. The goal is to ensure that PPP funds are distributed to legitimate small businesses in need of financial assistance, rather than to fraudulent entities. Additionally, the PPP Shell Company Discovery Act includes provisions for increased reporting requirements and oversight of PPP loans to prevent abuse of the program. This bill aims to protect taxpayer dollars and ensure that PPP funds are used as intended to support small businesses during the economic challenges brought on by the COVID-19 pandemic. Overall, the PPP Shell Company Discovery Act seeks to strengthen the integrity of the PPP program and prevent fraudulent activity by shell companies. By implementing additional verification measures and oversight, this legislation aims to safeguard the integrity of the PPP program and ensure that funds are distributed equitably to small businesses in need.
Congress
118
Number
HR - 1476
Introduced on
2023-03-08
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

3/8/2023
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

PPP Shell Company Discovery Act

This bill requires the Internal Revenue Service (IRS) to compile a list of Paycheck Protection Program (PPP) loan recipients whose loans were forgiven under the program.

Additionally, the IRS must compile (1) a list of such loan recipients who did not withhold payroll taxes in 2019, and (2) a list of loan such recipients for which the aggregate amount of PPP loans exceeded four times the greatest amount of wages paid by the recipient during a calendar month in 2019.

The IRS must notify the Department of Justice when the lists are complete.

Bill 118 hr 1476, also known as the PPP Shell Company Discovery Act, is a piece of legislation introduced in the US Congress. The purpose of this bill is to address concerns regarding the Paycheck Protection Program (PPP) and the potential for fraudulent activity by shell companies.

The PPP Shell Company Discovery Act aims to increase transparency and accountability in the PPP loan application process by requiring the Small Business Administration (SBA) to conduct additional checks to identify and prevent fraudulent applications from shell companies. Shell companies are entities that have little to no real business operations and are often used to conceal the true ownership of funds.

Under this bill, the SBA would be required to implement procedures to verify the legitimacy of businesses applying for PPP loans, including conducting background checks on applicants and cross-referencing information with other government databases. The goal is to ensure that PPP funds are distributed to legitimate small businesses in need of financial assistance, rather than to fraudulent entities. Additionally, the PPP Shell Company Discovery Act includes provisions for increased reporting requirements and oversight of PPP loans to prevent abuse of the program. This bill aims to protect taxpayer dollars and ensure that PPP funds are used as intended to support small businesses during the economic challenges brought on by the COVID-19 pandemic. Overall, the PPP Shell Company Discovery Act seeks to strengthen the integrity of the PPP program and prevent fraudulent activity by shell companies. By implementing additional verification measures and oversight, this legislation aims to safeguard the integrity of the PPP program and ensure that funds are distributed equitably to small businesses in need.
Alternative Names
Official Title as IntroducedTo provide for the collection and sharing of information, including tax return information, for purposes of criminal investigations with respect to loans under the Paycheck Protection Program.
Policy Areas
Commerce

Comments

Related

Committee:  Small Business
Committee:  Ways and Means

Recent Activity

Latest Summary7/26/2023

PPP Shell Company Discovery Act

This bill requires the Internal Revenue Service (IRS) to compile a list of Paycheck Protection Program (PPP) loan recipients whose loans were forgiven under the program.

Additionally, the IRS m...

Latest Action3/8/2023
Referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the commi...