Burr & Forman has established a dedicated team to counsel individuals, businesses and financial institutions in government audits, investigations and defense related to the Paycheck Protection Program (PPP) and Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP and CARES Act Audit, Investigations and Defense Team represents and advises clients in audits and investigations involving PPP loans and tax benefits that may have been claimed under the CARES Act.  This multidisciplinary team combines more than 230 years of legal experience and attorneys with previous government positions, including attorneys with IRS Chief Counsel, the United States Department of Justice, and United States Attorneys’ Offices.

“The federal government allocated unprecedented amounts of funding and new tax benefits for American businesses facing uncertainty due to the coronavirus, and we are grateful to have a team of attorneys equipped to help our clients stay on course to recover through this difficult economic period,” said Erich Durlacher, firm president. “The evolving interpretations related to PPP loans, how PPP loans may be used and loan forgiveness will present both predictable and unforeseen legal risks to businesses in the future. The government has already begun PPP and tax audits and investigations and is cracking down on perceived non-compliance. Our team is prepared to counsel clients to provide clarity and security regarding their decisions made during challenging times.”

Individuals and businesses receiving PPP loans may be subject to audits, investigations and enforcement actions related to their PPP loans, including the amount of the loan received, certifications made by the borrower in getting the loan, conditions and qualifications for a PPP loan, and the need for the loan to support ongoing operations. The United States Congress, Department of the Treasury and the Small Business Administration (SBA) have issued several legislative updates and notices of guidance for compliance, which has led to evolving interpretations of PPP loans and loan forgiveness. Burr & Forman’s dedicated team counsels clients on the changing guidance, especially now that the government has begun audits and criminal investigations.

The CARES Act also provides significant tax benefits to businesses and individuals, including the Employee Retention Tax Credit and Federal Payroll Tax Deferral. The PPP and CARES Act Audit, Investigations and Defense Team counsels clients on the requirements and compliance for these benefits, and represents businesses and individuals in civil tax audits and criminal investigations when the IRS begins asking questions.

More information on the team and legal risks associated with these relief programs is available at Burr’s PPP and CARES Act Audit, Investigation and Defense resource page.