Cedar Rapids Today

Congresswoman Ashley Hinson of Iowa has cast her vote in favor of the Protect Small Business from Excessive Paperwork Act. This legislation aims to provide small business owners with additional time and clarity to comply with new reporting requirements, avoiding further penalties. Congresswoman Hinson is also a co-sponsor of the Repealing Big Brother Overreach Act, which seeks to repeal the Corporate Transparency Act (CTA) and eliminate what she describes as burdensome mandates affecting American small businesses.

"I voted in favor of the Protect Small Business from Excessive Paperwork Act to give our Main Street community a reprieve from insane beneficial ownership paperwork requirements. Without action, many small business owners will face fines of $500 per day or even jail time," stated Congresswoman Hinson.

She further emphasized her stance by saying, "It’s past time to end the obsessive regulations on our small business community—which is why I also cosponsored the Repealing Big Brother Overreach Act to support a full repeal of the Corporate Transparency Act to end this misguided overreach. End the ridiculous paperwork and regulatory regime, unleash jobs and economic growth—it's that simple."

The Protect Small Business from Excessive Paperwork Act modifies existing requirements for U.S. small business owners that became effective on January 1, 2024. It specifically extends by one year the deadline for filing beneficial ownership information reports for companies formed or registered before January 1, 2024, with the Department of Treasury's Financial Crimes Enforcement Network (FinCEN).

Additionally, more than 32 million small businesses are expected to be impacted by FinCEN’s Beneficial Ownership Information reporting requirements. According to a survey conducted by the National Federation of Independent Business (NFIB), 83% of NFIB members were unaware of these reporting requirement regulations.

In a previous congressional session, Rep. Hinson questioned then-Treasury Secretary Janet Yellen about how over 32 million small businesses would be assisted in complying with these extensive beneficial ownership requirements but received no response.

The CTA imposes civil and criminal penalties up to $10,000 and two years' imprisonment for non-compliance—a measure that Rep. Hinson deems an unconstitutional targeting scheme against small businesses.

Rep. Hinson has actively supported legislative efforts aimed at shielding small businesses from these challenging requirements both in House discussions and through Financial Services and General Government appropriations.