Description:
S. 2757 would direct federal agencies to waive fines on small businesses for first-time violations of reporting requirements. Those waivers would not apply if the agency determines the violation was intended to cover criminal activity, related to tax collections, not corrected in a timely manner, or dangerous to public health and safety. Agencies would be required to track and report on the waived fines. CBO is unaware of any comprehensive list of specific fees, fines, or penalties at a level of detail that would isolate penalties for violations of reporting requirements. The Government Accountability Office reports, however, that aggregated collections for fines, penalties, and forfeitures total tens of billions annually. Given the wide latitude agencies have in enforcing penalties and that violators are often given a grace period to correct the violation, CBO expects that few first-time violators of paperwork rules would pay significant fines. Thus, CBO estimates that the loss of fines, which are recorded in the budget as revenues, would be insignificant in every year but would total about $1 million over the 2021-2030 period.
