Washington D.C. – U.S. Senators Katie Britt (R-Ala.) and Tim Scott (R-S.C.) today introduced the Protect Small Businesses from Excessive Paperwork Act of 2025, aimed at alleviating burdens on small businesses by extending the filing deadline for the reporting of beneficial ownership information (BOI). The legislation would push back the deadline to January 1, 2026, allowing the U.S. Department of Treasury more time to educate business owners about the new reporting requirements, assess decisions made by the Biden administration, and ensure that small businesses are not overburdened by unclear and complicated regulations.
“Alabama’s small businesses do more than just keep our state running — they employ our friends and neighbors, provide invaluable goods and services, and make our communities and state so special,” said Senator Britt. “This commonsense legislation would pare back unnecessary and costly regulations while providing needed clarity and reprieve to job creators across Alabama and the nation.”
Senator Scott echoed these sentiments, stating, “Small businesses are the backbone of our economy, and we need to ensure they have the necessary time and information to comply with reporting requirements from the federal government. This commonsense bill will ensure small businesses are protected and not overly burdened by unclear and unnecessarily complicated regulations – allowing them to focus on serving their customers while following the law.”
The Corporate Transparency Act, part of the Fiscal Year 2021 National Defense Authorization Act, created new reporting requirements for businesses to disclose their beneficial ownership. However, during the rule’s implementation, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) did not notify small businesses about the new requirements. A survey by the National Federation of Independent Businesses (NFIB) found that 80% of small business owners had never heard of the new reporting rules. Additionally, the National Small Business Association (NSBA) reports that small business owners are expected to spend nearly $8,000 in the first year to comply with these new regulations.
The U.S. Supreme Court recently declined to block the enforcement of these filing requirements. As a result, small businesses must comply immediately or face penalties. The Protect Small Businesses from Excessive Paperwork Act of 2025 seeks to address this by extending the filing deadline to January 1, 2026, providing additional time for small business owners to adapt and comply.
Senators Britt and Scott were joined in introducing the legislation by Banking Committee members Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Pete Ricketts (R-Neb.), Jim Banks (R-Ind.), and Kevin Cramer (R-N.D.). Senators Jerry Moran (R-Kan.) and James Lankford (R-Okla.) also signed onto the bill. In the House, Representative Zach Nunn (R-Iowa) led companion legislation, which passed with overwhelming support on Monday, receiving a 408-0 vote.
Senator Britt has consistently advocated for small businesses, opposing excessive regulatory burdens that could harm Main Street America. This week, she also cosponsored Senator Steve Daines’ (R-Mont.) Main Street Tax Certainty Act, which seeks to make the 20 percent pass-through business tax deduction permanent, aiming to create a more level playing field between small businesses and large corporations.
The Protect Small Businesses from Excessive Paperwork Act of 2025 now moves forward for consideration in Congress, offering a potential reprieve for small businesses struggling with the complexities of new federal reporting requirements.
