PPP Loans: Things you need to know

By
Education & Training with Arch Tax Resolution

I represent tax payers in the greater St. Louis area, the State of Missouri and nationwide who has IRS  and state issues who haven't filed tax returns outstanding taxes that need to be paid. Today round 2 of the PPP program has opened up and as like the first round, banks and other financial institutions have set up portals to use for application of funds and to track status of the loan process.

First and formost borrowers need to understand what you can do with the funds and what you can't do. The reason I bring this up is because many borrows have used funds for unallowable expenses and in a number of growing cases loans are not being forgiven and and the goverment has intiated legal action civiily and begun proscuting cases as well.

The goal is forgiveness. How do you do that? 

1. Maintain a separate account. Keep it simple. 

2.Make a payment of covered expenses from the PPP account.

3.Transfer funds from the PPP account to payroll accounts if needed.

The burden is on the borrower to provide documentation to support forgiveness.

 

It is illegal to use PPP money other than directed by law.

No vacations. No new cars

Audits are real. These can occur when loans default for unexpected reasons. The SBA inspector General is responsible for audits. Some of the items they look for are:

* Borrower non compliance with there loan agreement

* Misrepretations by a borrower.

   Criminal enforcement is taking place. Last May charges were brought against an individual for 

* Falsefiing an application.

* Non existant employees.

* Businesses that didn't exist.

* False statements on a goverment document. 

* Mail and wire fraud.

Making a mistake is not fraud. 

If you or anyone else you know are having issues with PPP loans or EIDL loans as well as outstanding IRS and State Tax obligations feel free to contact me @steveshapiroea.com

or call me @636-397-2759, or text me @ 636-866-4554.

                                                                        Arch Tax Resolution

                                                                        620 South Benton

                                                                        St. Charles, MO 63301

                                                                     www.archtaxresolution.com

                                                                        www.steveshapiroea.com

 

 

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Rainmaker
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CANDACE (Candy) STEVENS
Number Cruncher LLC - Overton, NV
Helping Taxpayers Resolve IRS problems

Great information.  Thank you for sharing Steve Shapiro 

Jan 19, 2021 07:59 PM #1
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