With federal authorities continuing to investigate COVID-19 pandemic fraud in 2023, businesses that obtained Paycheck Protection Program (PPP) loans or claimed the Employee Retention Credit (ERC) are under the microscope. Authorities including IRS Criminal Investigation (IRS CI) are aggressively targeting businesses (and business owners and executives) in PPP fraud and ERC fraud investigations—and these investigations are leading to criminal indictments in some cases.

Puerto Rico Act 60 allows qualifying individuals and businesses to avoid federal ordinary income and capital gains tax liability. Individuals and businesses must meet the Act’s Puerto Rico residency requirement in order to qualify, and they must only claim federal tax exemptions for qualifying income. Those who improperly claim Puerto Rico Act 60 tax benefits can expect to face scrutiny from the Internal Revenue Service (IRS)—including IRS criminal tax audits in many cases.

The Employee Retention Credit (ERC) was—and is—a pandemic relief program that allows qualifying businesses to claim refundable tax credits for the 2020 and 2021 tax years. Qualifying businesses can retroactively claim the ERC through 2025, and they can receive refunds from the Internal Revenue Service (IRS) if they paid more than necessary during the COVID-19 pandemic.

The Internal Revenue Service (IRS) is targeting Malta pension scams in criminal tax audits and investigations. These audits and investigations present substantial risks for targeted taxpayers—including the risk of prison time in some cases.

If you filed a Paycheck Protection Program (PPP) loan application, you are at risk of facing federal scrutiny. With reports suggesting that at least 10 percent of the roughly $800 billion disbursed under the program went to applicants that didn’t qualify, IRS Criminal Investigation (IRS CI) and the U.S. Department of Justice (DOJ) are continuing to investigate and prosecute PPP loan fraud in 2023.