IRS PPP Investigations
Our New York IRS PPP Lawyers Are Here to Protect You During an IRS Investigation
Even though the COVID 19 pandemic is behind us, the Internal Revenue Service continues to target taxpayers suspected of misusing federal relief programs. This includes the Paycheck Protection Program, which provided forgivable loans to eligible businesses. If you are facing scrutiny involving a PPP application or loan forgiveness certification, our New York IRS PPP lawyers can help. Individuals who want to understand how these reviews fit into broader IRS enforcement sometimes review firm background before reaching out.
IRS Criminal Investigation is pursuing criminal charges in many PPP cases. Allegations involving government fraud, tax evasion or false statements can lead to significant penalties, including fines and possible prison time for business owners, accountants or other individuals connected to the loan. Because of these risks, you need immediate guidance from experienced counsel.
PPP Fraud Remains a Top IRS Enforcement Priority
Targeting all forms of pandemic-era fraud remains a top priority for the IRS. This includes targeting all forms of PPP fraud. The federal government has estimated that pandemic-era fraud cost taxpayers hundreds of billions of dollars, with a significant percentage of this cost coming under the PPP.
As a result, businesses that improperly claimed the PPP remain at risk of facing serious consequences. The IRS is actively pursuing PPP fraud investigations, and our New York IRS PPP lawyers are available to help protect individuals and businesses targeted in these investigations by all means available.
Experienced Legal Representation for IRS PPP Investigations
We represent clients in all types of matters involving PPP related scrutiny. If you have been contacted by the IRS regarding a PPP loan application that you filed or assisted with during the pandemic, our lawyers can deal with the IRS on your behalf. Our experience includes defending against allegations such as:
- Submitting fraudulent PPP loan applications
- Providing inaccurate or misleading supporting documentation
- Misrepresenting business information to lenders
- Filing multiple PPP applications with different lenders
- Applying on behalf of non operating businesses or entities without payroll
- Using PPP funds for personal or unauthorized purposes
- Falsely certifying compliance with PPP rules
The IRS continues to identify new schemes and is expanding enforcement as it uncovers additional patterns of PPP misuse. Some taxpayers preparing for a review also examine related IRS compliance information to understand how evidence will be evaluated.
PPP Fraud Investigations in 2025 and Beyond
PPP enforcement is accelerating in 2025 due to expanded funding for IRS Criminal Investigation and renewed efforts to recover improperly obtained taxpayer dollars. The IRS is using data analytics to trace loan activity, identify suspicious lender relationships and detect inconsistencies between payroll filings and PPP submissions. The agency is also coordinating more closely with financial institutions and the Department of Justice to build stronger criminal cases. These developments mean that PPP reviews are more detailed and move faster than they did in earlier years.
Many investigations now involve cross referencing PPP claims with ERC filings, payroll tax records and bank statements. As a result, individuals facing review often benefit from broader IRS compliance insight when preparing their defense strategy.
Defenses in IRS PPP Investigations
The defenses available depend on the specific facts at issue. Whether you complied with PPP rules or you need to address mistakes, it is important to develop a defense strategy supported by documentation, accurate financial records and a clear explanation of the business’s operations during the covered periods. Our New York PPP lawyers help clients assess the government’s evidence and work toward outcomes that protect them from unnecessary penalties or criminal exposure.
Potential Charges Resulting from IRS PPP Investigations
The IRS and DOJ are working together to pursue a wide range of criminal charges in cases of suspected PPP fraud. All of these charges carry steep penalties, and many individuals and businesses have faced substantial sentences following IRS investigations involving PPP fraud allegations. Some examples of potential federal charges stemming from IRS PPP investigations include:
Bank Fraud
Under 18 U.S.C. Section 1344, defrauding a financial institution or attempting to defraud a financial institution is a federal crime that carries up to a $1 million fine and 30 years of federal prison time. This includes submitting false information in support of a PPP loan application.
Fraudulent Statements
Making false statements or representations to the federal government or a federally insured financial institution in connection with a federal program is a crime under 18 U.S.C. Section 1001. Convictions carry statutory fines and up to five years of federal prison time.
Money Laundering
The federal money laundering statute, 18 U.S.C. Section 1956, prohibits engaging in financial transactions involving funds derived from unlawful activities. Federal money laundering convictions carry up to 20 years in prison and a fine of $500,000 or twice the value of the funds involved, whichever is greater.
Tax Evasion and Tax Fraud
The Internal Revenue Code contains several provisions pertaining to criminal tax evasion and tax fraud. Companies and individuals accused of failing to properly pay tax on funds obtained through the PPP can face multiple tax-related charges, including charges related to both underreporting and underpayment. All of these charges carry substantial fines and prison time.
Wire Fraud
The federal wire fraud statute, 18 U.S.C. Section 1343, makes it a federal offense to make fraudulent representations via phone or internet communication. This includes submitting false information in support of fraudulent PPP loan applications. Federal wire fraud convictions also carry up to a $1 million fine and 30 years of federal prison time.
How Our New York IRS PPP Lawyers Can Help
So, what can we do to help? At Thorn Law Group, we have experience defending clients against a wide range of serious tax-related and other white collar criminal charges. We also work with clients to help them proactively resolve significant tax controversies without an IRS investigation. If you need legal representation for any PPP-related matter, here’s what we can do to help:
- If You Are Concerned About Facing an IRS PPP Investigation – If you are concerned about facing an IRS PPP investigation, we can assess your risk and help you make informed decisions about your next steps. If you are at risk of facing criminal prosecution for PPP fraud, this may involve submitting a voluntary disclosure to IRS Criminal Investigation (IRS CI). Submitting a voluntary disclosure provides a means of resolving willful violations of federal law without facing an IRS investigation.
- If You Are Facing an IRS PPP Investigation – If you are actively facing an IRS PPP investigation, our New York IRS PPP lawyers can interface with the IRS on your behalf. We can use our experience to defend you by all means available, and we can work to steer the investigation toward a resolution that avoids federal criminal charges.
- If You Are Facing Federal Charges Following an IRS PPP Investigation – If you are facing federal charges following an IRS PPP investigation, we can represent you in federal court. If warranted, we can also work with the DOJ on your behalf to target a plea deal that minimizes the consequences of your indictment. We have extensive experience in plea deal negotiations and representing clients in high-stakes federal trials.
Regardless of the circumstances at hand, if you are at risk of facing a federal criminal conviction for PPP fraud, it is imperative that you consult with experienced defense counsel promptly. Our New York IRS PPP lawyers are available to help, and we can provide emergency legal representation if necessary.
Schedule an Appointment with a New York IRS PPP Lawyer at Thorn Law Group
Are you facing scrutiny from the IRS related to a PPP application or loan forgiveness certification? If so, we encourage you to contact us promptly. To schedule an appointment with a New York IRS PPP lawyer at Thorn Law Group, call (914) 534-6004 or contact us confidentially online today.
