Off The HookProposed bill gives small business a break for first-time paperwork violations.

It could happen to any small-business owner: forgetting tosubmit a crucial piece of federal paperwork. Whether it's aform permitting the IRS to automatically withdraw taxes from anemployee's checking account, COBRA insurance information oranother federal form, an error of omission can mean hefty federalfines.

That could change, though, if the Small Business PaperworkReduction Act passes. The bill (S.1867) would take small businessesoff the hook for first-time federal paperwork violations if theysend in the missing paperwork up to six months after they'refound out of compliance. The bill, which at press time was headedfor the Senate Committee on Governmental Affairs, is sponsored bySen. Susan Collins (R-ME); the House version (H.R. 3310), sponsoredby Rep. David McIntosh (R-IN), passed in March.