PPP Shell Company Discovery Act
PPP Shell Company Discovery Act
Plain Language Summary
# PPP Shell Company Discovery Act Summary **What the Bill Does** This bill would require the Internal Revenue Service (IRS) to identify and investigate potentially fraudulent Paycheck Protection Program (PPP) loans—federal emergency funds distributed during the COVID-19 pandemic. Specifically, the IRS would create lists of loan recipients whose loans were forgiven and flag suspicious cases, then notify the Department of Justice for possible prosecution. **Key Provisions & Who It Affects** The bill targets three categories of potential fraud: (1) PPP loan recipients who received forgiveness but didn't pay payroll taxes in 2019, suggesting they may not have been legitimate businesses; (2) recipients whose total PPP loans exceeded four times their actual monthly wages in 2019, indicating they may have received more aid than they were entitled to; and (3) all other PPP recipients whose loans were forgiven. The measure primarily affects PPP borrowers suspected of misusing funds, while supporting law enforcement efforts to hold fraudsters accountable. **Current Status** The bill is currently in committee and has not yet been voted on by the full House.
It was introduced by Rep. William Timmons (R-SC) in the 119th Congress.
CRS Official Summary
PPP Shell Company Discovery ActThis 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.
Latest Action
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 committee concerned.