The US House of Representatives has passed a bill that would extend the deadline for small businesses to submit beneficial ownership information reports. The Protect Small Business from Excessive Paperwork Act, introduced by Rep. Zach Nunn (R-Iowa), postpones the reporting deadline from January 1, 2025, to January 1, 2026.
The law requires companies to file a report that identifies the individuals behind the company, aimed at combating terrorism and criminal organizations. Initially, small businesses formed before January 1, 2024, had until January 1, 2025, to file, while those created between 2024 and 2025 had a 90-day window.
However, court orders have put the law on hold, leaving business owners confused. Several lawsuits challenging the Corporate Transparency Act are ongoing, with conflicting court rulings leading to uncertainty. The Department of Justice has asked the court to lift an injunction that would revive beneficial ownership information reporting.
The House bill received bipartisan support and passed with a 408-0 vote. Republicans argue that the law’s implementation has been overly complex, while Democrats defend the Corporate Transparency Act. The Trump administration’s position on the issue remains unclear.
The bill extends the deadline to give small businesses more time to comply, amid concerns about the law’s complexity and the impact on low-risk entities.
Source: https://landline.media/house-passes-bill-to-extend-beneficial-ownership-information-report-deadline