The US House of Representatives unanimously passed a bill that would extend the deadline for small businesses to report their beneficial ownership information (BOI) until January 1, 2026. The bill, called the “Protect Small Businesses From Excessive Paperwork Act of 2025,” was sponsored by Representative Zach Nunn and aims to alleviate the burden on small businesses due to ongoing court cases.
The Corporate Transparency Act (CTA), passed in 2021, requires reporting companies to disclose the identity and information about beneficial owners of entities. However, due to numerous court cases, the original deadline for filing BOI reports was put on hold until January 1, 2025.
The proposed extension would affect only reporting companies that were incorporated before January 1, 2024, and not those formed after this date. AICPA’s vice president, Melanie Lauridsen, has expressed support for the bill, citing “hopeful information” despite potential court rulings changing the reporting requirements.
A recent court case in Texas involves a motion filed by the Department of Justice to lift or modify a nationwide injunction that halted BOI filing deadlines. The government is seeking to extend the deadline for 30 days if the court grants a stay.
The bill now heads to the Senate, where it will be reviewed by Senator Tim Scott’s committee on banking. A companion bill has also been introduced in the Senate, further solidifying support for the proposal.
Source: https://www.journalofaccountancy.com/news/2025/feb/boi-reporting-deadline-extension-passes-us-house.html