H.R. 324: PPP Shell Company Discovery Act

This bill, known as the PPP Shell Company Discovery Act, aims to enhance transparency and accountability regarding loans received through the Paycheck Protection Program (PPP). The main components of the bill are as follows:

Collection of Information

The bill requires the Secretary of the Treasury, in consultation with various agencies, to compile a list of individuals and entities that received PPP loans. This list will include:

• The name of the recipient
• The mailing address
• The taxpayer identifying number
• The total amount of PPP loans received

This information will be made accessible to officers and employees of the Internal Revenue Service (IRS) and the Department of Justice (DOJ) for potential use in criminal investigations.

Creation of Specific Lists

The bill outlines the creation of two specific lists based on employee tax withholding information:

• Loan Recipients with No FICA Tax Withholding: A list of PPP loan recipients who did not withhold any Federal Insurance Contributions Act (FICA) taxes during the year 2019.
• Loan Recipients with Large PPP Loans Relative to FICA Wages: A list of those whose total PPP loans equal or exceed four times the highest monthly wages they reported in 2019 for which FICA taxes were paid.

Notification and Disclosure

The Commissioner of Internal Revenue is responsible for notifying the Attorney General and Secretary of the Treasury once these lists are finalized. Additionally, the bill provides guidelines for the disclosure of this information for use in criminal investigations, aligning with existing legal frameworks.

Definitions

For clarity, the bill defines key terms:

• PPP Loans: Covered loans provided under specific sections of the Small Business Act that were forgiven.
• PPP Loan Recipient: Any individual or entity included on the compiled list of loan recipients.

Overall Purpose

The overarching aim of the legislation is to assist in identifying potential misuse of PPP funds by collecting detailed information on loan recipients, particularly focusing on those not adhering to tax withholding requirements or receiving disproportionately large loans compared to reported wages.

Relevant Companies

None found