PPP Loan Forgiveness
The PPP loan forgiveness process will be time consuming and complicated, more so than the PPP application process itself. Calculations are complex and supporting documentation needs to be thorough and succinctly compiled. The Freeman Tax Law team has customized services to fit your needs. Our full-service approach means you send us all the necessary information and we take care of the rest.
Please fill out this form to schedule a free, confidential consultation to discuss your personal situation. Or, give us a call right now at 855-935-5945
PPP Loan Forgiveness Services
Preparing the PPP loan forgiveness application is a complex task. We leverage proven processes to check for mistakes and automate entry for eligible payroll costs and eligible non-payroll costs
Ensure Maximum Forgiveness
One calculation error can cost you thousands of dollars. This includes items like FTE calculations and wage reduction penalties - all of which need to be closely scrutinized for accuracy and best possible financial outcomes.
Ever-changing PPP laws
The PPP program and forgiveness requirements have already changed numerous times. Our team constantly monitors program rule changes to make sure you get the maximum forgiveness amount.
We create the entire PPP forgiveness package, which can be easily exported to any bank, or input into any bank portal.
Reporting & Security
Audit protection and archival of all pertinent forms and supporting documents. Rest easy knowing all loan data is safe, secure, and private - and that we are here to keep your company compliant.
PPP Loan Forgiveness - What You Should Know
In the months since the Paycheck Protection Program (PP) was created, the only certainty about the program has been uncertainty.
Two of the biggest areas of uncertainty remaining with PPP forgiveness are the following:
Deductibility of expenses: Forgiven PPP loans are not taxable income, but the IRS declared that no tax deduction is allowed for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a PPP-covered loan. The position is that allowing the deductibility of expenses paid with PPP funds would result in a double-dipping scenario.
Hundreds of organizations have urged Congress to allow full deductions for PPP-related business expenses. Given the severity of the pandemic’s impact on U.S. businesses, the AICPA believes Congress intended PPP expenses to be deductible. Lawmakers from both parties have voiced support for this position, but that has not yet translated into congressional action.
Blanket forgiveness: Most PPP loans were for $150,000 or less. Because the PPP loan forgiveness process can be tedious, members of Congress have proposed legislation that would allow for a much simpler process of streamlined forgiveness for loans under a certain amount. The commonly discussed threshold is loans of $50,000 and below, but that could change, and there’s a possibility that blanket forgiveness won’t ever be granted. In an ideal scenario, borrowers won’t file for loan forgiveness until the questions surrounding tax deductibility and automatic forgiveness are resolved.
Some cases of PPP fraud involve obvious misconduct like falsely claiming to own a business or overstating the number of employees to get a larger loan. But as the list below shows, any inaccurate information on a PPP application might result in prosecution, so even fairly innocent mistakes can come with real consequences. Regardless of the nature of any alleged offense, if you’ve been charged with a crime for PPP fraud, you need experienced counsel to represent you.
* Spending PPP funds for unapproved purposes – PPP Funds can only be spent on eligible payroll costs such as employee pay and eligible non-payroll costs such as mortgage, rent and utilities. Thus, a business owner who spends PPP funds on something else can be charged with PPP fraud.
* PPP loans from multiple lenders – Many different lenders were authorized to loan PPP money. A business that accepted PPP loans from multiple lenders can be charged with PPP fraud. The federal government can track which businesses have received PPP funds from each lender and has indicated that it will target businesses that have received PPP funds from more than one lender.
* Overstating the number of employees The amount of money a business receives under the PPP depends on the amount a business spends on payroll. A business owner who overstates how many employees the business has on a PPP application can be prosecuted.
* Understating the number of employees – PPP loans were administered through the Small Business Administration (SBA) and were available only to small businesses (under 500 employees in most industries). Understating the number of employees to qualify as a small business can lead to charges.
* Making inaccurate statements on a PPP application – PPP applicants were required to certify in good faith that the loans were necessary to support their business and that all information on the application was accurate. Therefore, a business owner could be prosecuted for making inaccurate statements on a PPP application.
* Identity Theft – Someone who applies for a PPP loan using another person’s identity might face identity theft charges.
Freeman Tax Law Can Help
Why do people choose Freeman Tax Law?
- Straight-Forward, Easy to Understand Style
- Years of Experience Handling Cases of All Sizes and Types
- Will Handle All Communication with the IRS on Your Behalf
- Free, No-Obligation Initial Consultation
“The client is the most important person at our firm….it is our job to understand their facts, clearly explain all options to resolving a problem, treat them with integrity and provide the highest level of representation.”
— Jeffrey S. Freeman, J.D., LL.M., Attorney and Counselor
Let us help you navigate through the PPP process with a free, no-obligation consultationCall: 855-935-5945
Jeffrey S. Freeman, Esq. has personally represented and counseled hundreds of clients with regard to their tax matters. During his early career, Mr. Freeman worked for a large international tax firm specializing in international tax issues. He has extensive experience representing Fortune 100 clients and high net worth families. By combining large firm training and attention to detail, with a boutique firm approach and a personal focus on resolving complex tax matters efficiently, creatively and strategically, Mr. Freeman’s priority is always to provide his clients with the highest level of representation.
Mr. Freeman holds a Masters of Law in Taxation (LL.M.) from Georgetown University Law Center in Washington, D.C. and Juris Doctor, Cum Laude, from the Detroit College of Law at Michigan State University and a Bachelor of Arts in Accounting, with honor, from Michigan State University.