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WASHINGTON, D.C. — The U.S. House of Representatives today passed Representative Zach Nunn’s (IA-03) bipartisan bill unanimously to reduce excessive paperwork for small businesses. The Protect Small Business from Excessive Paperwork Act, co-led by Majority Whip Tom Emmer (MN-06), Representative Sharice Davids (KS-03), and Representative Don Davis (NC-01), will make it easier for Main Street businesses to comply with federal law and reporting requirements. “Iowa’s economy is driven by small businesses – more than half of Iowans are employed by Main Street,” said Rep. Nunn. “Bureaucrats in D.C. sit in their ivory towers, demanding businesses comply with onerous red tape, without considering the burden it puts on businesses. By passing this legislation, we’re taking a step forward to roll back unnecessary regulations and simplify requirements for job creators while still adhering to the law.” In 2020, Congress passed the Corporate Transparency Act to establish new beneficial ownership information (BOI) reporting requirements for businesses to root out nefarious shell companies operated by foreign adversaries. However, during the implementation phase, the U.S. Department of Treasury Financial Crimes Enforcement Network (FinCEN) failed to notify small businesses of the new reporting requirements. According to a survey by the National Federation of Independent Businesses (NFIB), 80% of NFIB members have never heard of the new reporting requirements. Complicating matters further, according to the National Small Business Association (NSBA), the average small business owner will spend nearly $8,000 to comply with these new reporting requirements in the first year alone. “Small businesses are the backbone of our economy, and they shouldn’t have to spend unnecessary time and money navigating burdensome, unclear regulations,” said Rep. Davids. “That’s why I’m proud to see my bill pass the House today — ensuring small businesses have the time and support they need to comply with the law without risking their livelihoods. This is a win for Kansas entrepreneurs and small businesses nationwide, and it’s a step toward creating a more supportive environment for Main Street to thrive.” Rep. Nunn hosted FinCEN Director Gacki in Des Moines on May 31, 2024, to host a small business roundtable to discuss the new BOI requirements. At this time, Director Gacki reported that only 2 million out of approximately 32.6 million small businesses had filed their reports. “Small businesses in Minnesota and across the country desperately need clarity on FinCEN’s complicated and costly beneficial ownership reporting requirements,” said Whip Emmer. We we’re proud to support Representative Nunn’s legislation that will give entrepreneurs in Minnesota the time and transparency they need to comply so they can continue doing what they do best: driving our local economies forward.” Despite the lack of filings under the new requirements, FinCEN has refused to extend the deadline. As of January 1, 2025, millions of small business owners now face a daily fine of up to $591 and up to two years in jail. “The Protect Small Businesses from Excessive Paperwork Act provides small business owners the time and clarity they need to meet new reporting requirements without incurring penalties, and Congress must pass this crucial legislation,” said Rep. Davis. On January 23, 2025, the U.S. Supreme Court declined to block the enforcement of these filing requirements. Now, small businesses across the country are expected to comply immediately or face harsh penalties. The bipartisan Protect Small Business from Excessive Paperwork Act would extend the filing deadline until January 1, 2026, for small businesses while the Treasury Department educates businesses on the new reporting requirements and ensures small businesses are not overburdened with unclear and unnecessarily complicated new regulations. Rep. Nunn spoke on the House Floor regarding this bipartisan legislation today. It now awaits consideration in the Senate. Text of the bill can be found here. ### |