U.S. Senators Katie Britt, Tim Scott Introduce Legislation to Ease Burdens on Small Businesses

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 2025to ease burdens and shield small businesses from excessive red tape. Their legislation would extend the filing deadline for businesses to report beneficial ownership information (BOI) until January 1, 2026, giving the U.S. Department of Treasury more time to educate business owners on the new reporting requirements, assess Biden administration BOI decisions, and ensure small businesses are not overburdened – and potentially held liable – with unclear and unnecessarily 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.”

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. Representative Zach Nunn (R-Iowa) led companion legislation in the House, which passed on Monday by a vote of 408-0.

“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,” said Chairman Scott.

The Corporate Transparency Act was signed into law as part of the Fiscal Year 2021 National Defense Authorization Act and established new reporting requirements around beneficial ownership for businesses.

During implementation of the rule, 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.

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 Protect Small Businesses from Excessive Paperwork Act of 2025 would extend the filing deadline until January 1, 2026.

Senator Britt has been a fierce advocate for small businesses, criticizing reckless rulemaking proposals by various U.S. federal financial regulators and opposing their harmful effects on Main Street America. 

This week, Senator Britt also cosponsored Senator Steve Daines’ (R-Mont.) Main Street Tax Certainty Act, which would make the 20 percent pass-through business tax deduction permanent, to ensure a level playing field between small businesses and large corporations. 

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