You Might Have to Give Back Those Loans

Fox Business is reporting that there was so much fraud in the payroll guarantee program (the PPP program) that the Internal Revenue Service (IRS) is considering auditing and clawing back some of the grants and loans that were originally given to guarantee payrolls for American business during the pandemic.

Because the application and approval process were so flawed, we have heard that up to 25% of the grants and loans (especially the grants) were given to fraudulent companies.

You know what documentation you had to provide to get the original grants or loans, so make sure no one has thrown it out. Hopefully, you’ve got the application, too, that was approved. The profit and loss statements and the balance sheets should be part of your tax packages, so you shouldn’t suffer too much angst.

Unless you obtained the grant/loan under false pretenses. Then you’ve got a problem.

If you can’t come up with the money to return, or the documentation, you’re probably gonna have a problem but we don’t know yet what might happen (the recall was just announced on October 20).

We’ll update this post or do new posts as information comes available to us.