As included in our previous post, the SBA is offering guidance in the loan forgiveness process, which includes the scenario of rejection of the PPP forgiveness.

In many cases, the PPP application was prepared by CPAs, EAs, bankers, consultants and other business professionals. These professionals are already aware of the PPP application, support provided with the original application (tax returns, Schedule C, etc), PPP forgiveness application, and the support for the PPP forgiveness (payroll reports, bank statements, lease agreements, etc.). Not allowing the third party preparer, who is already familiar with the whole PPP process, to challenge the PPP forgiveness rejection seems to increase complexity, adds another layer (lawyer), increase cost of the PPP for the already impacted business owner, etc.

Currently, if a business owner would like representation to deal with a PPP forgiveness rejection, the only authorized professional is an attorney. Note that the CPAs, EAs, and lawyers can represent anyone (without having prepared those tax returns) in front of the IRS. However, in the case of the PPP, the authority is the Small business administration (SBA) and the authority does not carry over.

Note that the SBA is still accepting comments, so there might be changes to simplify the PPP rejection forgiveness process or give more options to the small business owners.

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