H.R.736 - Protect Small Businesses from Excessive Paperwork Act of 2025 (119th Congress)
Summary
H.R.736, the "Protect Small Businesses from Excessive Paperwork Act of 2025," modifies the deadline for certain pre-existing reporting companies to file beneficial ownership information reports. Specifically, it extends the filing deadline for companies formed or registered before January 1, 2024, to January 1, 2026. This bill was passed by the House of Representatives and referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Expected Effects
The primary effect of this bill is to provide small businesses with additional time to comply with beneficial ownership information reporting requirements. This could reduce the immediate burden of paperwork and compliance costs for these businesses. It gives them more time to prepare and submit the required information.
Potential Benefits
- Provides small businesses with more time to comply with reporting requirements.
- Reduces the immediate burden of paperwork and compliance costs.
- May prevent penalties for non-compliance due to lack of time.
- Allows businesses to allocate resources to other operational needs in the short term.
- Simplifies the regulatory landscape for small businesses.
Most Benefited Areas:
Potential Disadvantages
- Delays the receipt of beneficial ownership information by government agencies.
- Could potentially provide more time for illicit activities to remain undetected.
- May create confusion if businesses are unsure of the original deadline versus the extended deadline.
- The delay could impact the effectiveness of efforts to combat money laundering and terrorist financing.
- The extension is only for a limited time, and businesses will still need to comply eventually.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8) as it regulates activities that affect interstate commerce, specifically related to financial transactions and corporate transparency. There are no apparent violations of individual rights or freedoms as outlined in the Bill of Rights. The act does not appear to infringe upon any specific constitutional provision.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).