Sponsor
William R. Timmons
Representative · R-SC
Representative · R-SC
The bill strengthens fraud detection and program oversight by giving IRS and DOJ consolidated access to PPP recipient data, but does so at the cost of increased privacy and civil‑liberty risks and added compliance burdens that may chill legitimate borrowers.
Taxpayers and small businesses will see IRS and DOJ gain access to a consolidated PPP-recipient list, enabling targeted criminal investigations and referrals for prosecution of suspected loan fraud.
Small businesses will face stronger program oversight because agencies can match payroll-tax records to loan awards to identify suspicious recipients and recover misspent funds.
The public will likely benefit from greater deterrence of future misuse of emergency loan programs as increased detection and the prospect of prosecution reduce incentives for fraud.
Small businesses and taxpayers will have sensitive taxpayer information (TINs, addresses, loan amounts) shared across federal agencies, increasing privacy, identity-theft, and legal/civil‑liberties risks.
Small businesses will face heightened risk of mistaken matches and wrongful scrutiny or investigations, which could chill legitimate borrowers from seeking relief or cooperating with programs.
Small businesses and federal employees will incur additional compliance and administrative burdens to produce, review, and respond to lists and investigation referrals, raising costs and diverting resources.
Based on analysis of 2 sections of legislative text.
Requires Treasury to publish a PPP recipient list and requires IRS to create payroll-tax–derived lists to flag potential abuse and notify DOJ/Treasury.
Official title: To provide for the collection and sharing of information, including tax return information, for purposes of criminal investigations with respect to loans under the Paycheck Protection Program.
Introduced January 9, 2025 by William R. Timmons · Last progress January 9, 2025
Requires Treasury, after consulting SBA and oversight bodies, to publish a list of Paycheck Protection Program (PPP) loan recipients including names, addresses, taxpayer identifying numbers, and aggregate loan amounts, and makes that list available to IRS staff and the Department of Justice. Directs the IRS to produce two additional lists derived from payroll-tax records identifying PPP recipients with little or no payroll tax withholding in 2019 and those whose PPP loans are unusually large relative to 2019 monthly wages, and to notify DOJ and Treasury when those lists are complete for potential criminal-investigation disclosures.