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," amends Title 31 of the United States Code. It specifically modifies the deadline for certain pre-existing reporting companies to file beneficial ownership information reports. The bill extends the filing deadline for companies formed or registered before January 1, 2024, to January 1, 2026.
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 extension aims to alleviate the burden of paperwork and potential compliance costs for these businesses. It gives them more time to gather and submit the required information.
Potential Benefits
- Reduces the immediate compliance burden on small businesses.
- Provides additional time for businesses to understand and meet the reporting requirements.
- May decrease the risk of penalties for non-compliance due to lack of time.
- Could free up resources for small businesses to focus on core operations.
- Simplifies the initial rollout of beneficial ownership reporting requirements.
Most Benefited Areas:
Potential Disadvantages
- Delays the receipt of beneficial ownership information by government agencies.
- Could potentially provide more time for illicit actors to conceal their activities.
- May create confusion if businesses are already in the process of complying with the original deadline.
- The delay might require adjustments to agency enforcement and oversight plans.
- Could be perceived as weakening transparency efforts.
Constitutional Alignment
The bill aligns with the legislative powers granted to Congress under Article I, Section 8 of the US Constitution, which empowers Congress to make laws necessary and proper for carrying into execution the powers vested in the government. This includes the power to regulate commerce and ensure transparency in financial transactions. The act does not appear to infringe upon any specific constitutional rights or limitations.
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).