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.

Fraud under the Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) program has cost the federal government hundreds of billions of dollars. While these programs were intended to help businesses struggling during the COVID-19 pandemic, investigations have revealed that they quickly became prime targets for fraud.

As a U.S. taxpayer, you are required to report your income to the Internal Revenue Service (IRS). You must report your income annually, and when you file your annual tax return, you must pay any tax you owe.  

The Internal Revenue Service (IRS) regularly audits international partnerships for federal tax compliance. But, while these audits may be routine procedures for the IRS, they present substantial risks for the partnerships that are targeted. Tax audits can lead to substantial liability, and targeted partnerships need to execute an informed and strategic defense with the help of experienced tax counsel.

As a U.S. citizen or resident living in Virginia, you have an obligation to report your income to the Internal Revenue Service (IRS). This is true regardless of what you do with your income—whether you receive direct deposits, deposit your paychecks with your bank, or cash your paychecks as soon as you receive them.