Sponsors
The bill strengthens detection, investigation, and targeting of suspected PPP loan fraud to protect taxpayer funds, but increases privacy exposure, risks undue scrutiny of some lawful businesses, and raises administrative costs.
Taxpayers and honest small-business owners — will see stronger detection and deterrence of PPP loan fraud, increasing the likelihood that misspent funds are identified and recovered.
IRS and DOJ (law enforcement) — will gain access to borrower data enabling quicker criminal investigations of PPP misuse, which can speed prosecutions and recovery of funds for taxpayers.
Small-business owners and taxpayers — the IRS will use targeted lists (e.g., no payroll withholding in 2019; loans ≥4x largest monthly wages) to focus enforcement on high‑risk recipients, improving enforcement efficiency and prioritization of limited resources.
Taxpayers — identifying numbers and addresses will be compiled and shared across agencies, increasing exposure of sensitive taxpayer return information and raising privacy risks.
Small-business owners who meet numeric criteria — may face scrutiny, audits, or investigations even if their loans were lawful, imposing time, compliance, and reputational costs.
Treasury and IRS staff (and ultimately taxpayers) — will face added administrative burden and costs to compile, verify, manage large datasets, and coordinate enforcement across agencies.
Based on analysis of 2 sections of legislative text.
Requires Treasury to compile PPP recipient data (name, address, TIN, loan amount) and directs IRS to create two enforcement-targeted lists for DOJ/IRS access.
Introduced January 9, 2025 by William R. Timmons · Last progress January 9, 2025
Requires the Treasury Department to compile a roster of all Paycheck Protection Program (PPP) loan recipients that includes each recipient’s name, mailing address, taxpayer identification number, and total PPP loan amount, and to make that roster available to IRS and Department of Justice personnel. Directs the IRS to create two targeted lists (with the same data): recipients who did not withhold payroll taxes in 2019, and recipients whose total PPP loans are at least four times their largest monthly 2019 payroll subject to employer FICA tax; the IRS must notify the Attorney General and Treasury when each list is complete and disclosures for criminal investigations follow existing tax-return law.