Central South Dakota News

U.S. Senator Mike Rounds, representing South Dakota, has joined forces with Senate Banking Committee Chairman Tim Scott from South Carolina to propose new legislation aimed at easing the regulatory burden on small businesses. The Protect Small Businesses from Excessive Paperwork Act of 2025 seeks to extend the deadline for reporting beneficial ownership information (BOI) to January 1, 2026.

The extension is intended to provide the Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of Treasury, additional time to educate business owners about new reporting requirements and assess decisions made by the Biden administration regarding BOI. This move aims to prevent small businesses from being penalized due to unclear regulations.

Senator Rounds emphasized the importance of small businesses in South Dakota's economy, stating, “Small businesses are crucial for our way of life in South Dakota.” He highlighted that nearly 90,000 small businesses employ around 200,000 people in the state and stressed that adequate preparation and notice should be given before implementing new requirements.

Chairman Scott also underscored the significance of supporting small enterprises: “Small businesses are the backbone of our economy." He noted that this bill would help ensure they can comply with federal regulations without being overly burdened.

The legislation has garnered support from several other senators including Thom Tillis, Bill Hagerty, Cynthia Lummis, Katie Boyd Britt, Pete Ricketts, Jim Banks, Kevin Cramer, Jerry Moran, and James Lankford—all members of the Senate Banking Committee. Representative Zach Nunn spearheaded similar legislation in the House which was passed unanimously on February 10.

Previously in July 2023, Senator Rounds had introduced a related measure called the Protecting Small Business Information Act which sought a delay in enforcing a January 1 deadline set by an earlier law—the Corporate Transparency Act—enacted under Fiscal Year 2021 National Defense Authorization Act. This act imposed new BOI reporting requirements on businesses but FinCEN failed to adequately inform them about these changes according to surveys conducted by organizations like NFIB and NSBA.

On January 23 this year though efforts were made otherwise—the U.S Supreme Court refused requests blocking enforcement leaving many unprepared entities facing possible penalties unless Congress intervenes as proposed now through protective legislative measures such as those led primarily here again via advocacy partnerships between both Senators Scott alongside Mr.Rounds plus numerous supportive colleagues likewise across Capitol Hill chambers themselves presently too within ongoing deliberative processes concerning aforementioned procedural timelines respectively impacting sector stakeholders nationwide accordingly thereby facilitating requisite compliance adaptations ultimately moving forward thereafter overall under revised schedules stipulated henceforth effectively together among concerned parties therein alike today onwards going forth further indeed so thereby duly constituting anticipated outcomes pending respective enactments eventually concluding finally soon enough hopefully then afterward...