Roughly $100 billion in loans given for COVID-19 programs have been identified as suspected fraud by tax authorities.
Earlier this year, the Small Business Administration (SBA) referred more than $200 billion in suspected COVID loan fraud to the IRS.
The tax agency then compared the information that the borrowers submitted to the SBA when applying for the loans with the information they declared to the IRS.
Analysis identified discrepancies associated with approximately $100 billion in loans, the SBA said in a Sept. 23 statement.
The IRS will determine whether additional taxes and penalties apply, including penalties for committing fraud, according to the SBA.
The suspected fraud pertains to the Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loan (EIDL) initiatives. …