Tag Archives: PPP Loan

IRS Says Lenders Don’t Need To Report PPP Loan Forgiveness

The Internal Revenue Service said Tuesday that lenders who make Paycheck Protection Program loans that are later forgiven under the CARES Act should not file information returns or furnish payee statements to report the forgiveness.

In Announcement 2020-12, the IRS said that when all or a portion of the stated principal amount of a covered loan is forgiven because the recipient satisfies the forgiveness requirements under section 1106 of the CARES Act, an entity isn’t required to, “for federal income tax purposes only,” and should not, file a Form 1099-C information return with the IRS or provide a payee statement to the recipient as a result of the forgiveness.

The IRS noted that filing such information returns with the IRS could result in the issuance of under reporter notices on the IRS’s Letter CP2000 to eligible recipients, and furnishing payee statements to those recipients could therefore cause confusion. The IRS issued the announcement with the goal of preventing such confusion.

The announcement may lead to some confusion anyway, however, as the transparency around the PPP loans has been the subject of some wrangling in Congress. Earlier this year, Democrats pressured the Small Business Administration to release more information about the recipients of the loans. Some information eventually came out in the form of spreadsheets, but the data proved to be inaccurate in many cases. Earlier this month, the Justice Department’s Criminal Division charged 57 defendants with PPP-related fraud and has identified nearly 500 people suspected of COVID-related loan fraud.

Source: by Michael Cohen | Accounting Today

Love & Hip Hop: Atlanta Star Maurice Fayne Back Home Following Arrest For Blowing $2,000,000 PPP Wuflu Loan On Luxury Goods And Child Support

Love & Hip Hop: Atlanta star Maurice Fayne is back home after he was arrested for allegedly using a $2 million PPP coronavirus loan to buy luxury items and make child support payments.  

The reality star, 37, was pictured taking a phone call outside of his home in Georgia over the weekend. 

Fayne was sitting upon a slick red BMW and drinking a soda as he pressed the phone against his ear, appearing deep in thought. 

Fayne was dressed comfortably in a white T-shirt and flashy red sweatpants. 

Fayne was sipping from the soda bottle as he listened intently to the call, before eventually returning back inside his house. 

Authorities say Fayne used an emergency loan from the federal government to lease a Rolls Royce, make child support payments and purchase $85,000 worth of jewelry.

Fayne, who goes by Arkansas Mo on the VH1 show ‘Love & Hip Hop: Atlanta,’ was arrested Monday on a charge of bank fraud, the Department of Justice said in a news release.

Fayne is the sole owner of transportation business Flame Trucking and in April he applied for a loan that the federal government was offering to small businesses decimated by the coronavirus pandemic, officials said. 

In his application, Fayne stated his business employed 107 employees with an an average monthly payroll of $1,490,200, the release said. 

Fayne requested a Paycheck Protection Program loan for over $3,000,000 and received a little over $2,000,000, officials said.

He used more than $1.5million of the loan to purchase jewelry, including a Rolex Presidential watch and a 5.73 carat diamond ring, the release said. 

Fayne also leased a 2019 Rolls Royce Wraith and paid $40,000 in child support.

‘At a time when small businesses are struggling for survival, we cannot tolerate anyone driven by personal greed, who misdirects federal emergency assistance earmarked for keeping businesses afloat,’ said Chris Hacker, Special Agent in Charge of FBI Atlanta.

When he met with investigators last week, Fayne denied spending the loan on anything besides payroll and business expenses.

But last Monday, federal agents searched Fayne’s home and seized the jewelry and around $80,000 in cash, including $9,400 Fayne had in his pockets, the release said.

Fayne’s attorney Tanya Miller said there was ‘considerable confusion’ about PPP guidelines and over whether owners could ‘pay themselves a salary’ when asked about the charges by CNN.

She added that she hopes these ‘issues’ will be better explained in the near future.    

He was released on $10,000 bond. 

Fayne appeared on several episodes of ‘Love & Hip Hop: Atlanta’ as the love interest of Karlie Redd, a longtime cast member, news outlets reported.

Source: By CHRISTINE RENDON and RYAN FAHEY FOR MAILONLINE and ASSOCIATED PRESS