U.S. Sen. Mike Rounds (R-SD) recently joined 10 of his Republican colleagues in introducing legislation to help shield America’s small businesses from too much legal red tape.
The Protect Small Businesses from Excessive Paperwork Act of 2025, S. 505, would extend the filing deadline for companies formed or registered before Jan. 1, 2024 to report beneficial ownership information (BOI) until Jan. 1, 2026.
S. 505 would give the Financial Crimes Enforcement Network (FinCEN) within the U.S. Department of Treasury more time to inform business owners of the new BOI reporting requirements, assess Biden administration BOI decisions, and make certain small businesses are not held liable for unclear and complicated regulations, according to a bill summary provided by Sen. Rounds’ staff.
“It’s unacceptable to give small business owners new requirements without adequate preparation and notice,” Sen. Rounds said. “Our legislation would extend the filing deadline until 2026, giving FinCEN more time to get resources to business owners and allow them extra time to complete necessary paperwork in compliance with federal law.”
New reporting requirements around BOI were enacted as part of the Corporate Transparency Act, which was signed into law as part of the fiscal year 2021 National Defense Authorization Act. During implementation of the rule, FinCEN failed to notify small businesses of the new reporting requirements, the summary says.
On Jan. 23, the U.S. Supreme Court declined to block enforcement of the filing requirements, and small businesses must comply immediately or face penalties. If enacted, S. 505 would extend the filing deadline to allow more time for these companies to comply.
The bill is sponsored by U.S. Senate Banking Committee Chairman Tim Scott (R-SC) and has 10 original cosponsors, including Sen. Rounds and U.S. Sens. Jerry Moran (R-KS) and Thom Tillis (R-NC).