Small Business Paperwork Amnesty Act of 2006

The Small Business Paperwork Amnesty Act of 2006 proposes to protect small business owners from being fined for their first ever paperwork mistake. Under this bill, federal agencies would be required to waive civil penalties for initial reporting errors, provided the mistake does not pose a threat to public health, safety, or tax collection.

For the average small business owner, this means they would generally receive a six-month window to correct a first-time filing error before facing financial penalties. However, this "amnesty" would not apply if the error hides criminal activity or if the business has previously violated other paperwork requirements with that same agency.