The U.S. Senate Committee on Banking, Housing and Urban Affairs announced that Chairman Tim Scott introduced the Protect Small Businesses from Excessive Paperwork Act of 2025, which would delay the deadline for businesses to file beneficial ownership information (BOI) reports under the Corporate Transparency Act (CTA) to 1 January 2026. The proposal is positioned as giving the U.S. Department of the Treasury additional time to educate business owners, review prior BOI implementation decisions, and reduce compliance uncertainty and potential liability for small businesses. The release cites implementation concerns, including the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) not notifying small businesses of the new reporting requirements, with a National Federation of Independent Businesses survey indicating 80% of members had not heard of the requirements. It also references National Small Business Association estimates that the average small business owner would spend nearly USD 8,000 to comply in the first year, and notes that the U.S. Supreme Court declined to block enforcement of the filing requirements on 23 January 2025. A companion bill led by Representative Zach Nunn passed the House by a vote of 408-0, and the Senate proposal has been introduced with multiple Senate co-sponsors.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-02-12
U.S. Senate Committee on Banking, Housing and Urban Affairs chair introduces bill to extend beneficial ownership reporting deadline to 1 January 2026
Chairman Tim Scott of the U.S. Senate Committee on Banking, Housing and Urban Affairs introduced the Protect Small Businesses from Excessive Paperwork Act of 2025, proposing to delay beneficial ownership information report deadlines under the Corporate Transparency Act to 1 January 2026. The bill aims to give the U.S. Department of the Treasury more time for business owner education and to address compliance concerns, as a survey showed 80% of small businesses were unaware of the requirements. A companion bill passed the House unanimously, and the Senate proposal has multiple co-sponsors.