,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #efcf  ,,in ,,the ,,house ,,of  
,,representatives  ,september #ah1 #bjad
 ,mr4 ,peters of ,california 7for       
himself1 ,mrs4 ,napolitano1 ,mr4        
,vargas1 ,mr4 ,murphy of ,florida1 and  
,mr4 ,delaney7 introduced the following 
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to cut and reduce excess
 and duplicative tax assessments and    
paperwork for entrepreneurs4  #a4 ,short
 title ,this ,act may be cited as the   
,cut ,,redtape ,act4  #b4 ,exemption of 
new small businesses from estimated     
income tax payments  7a7 ,individuals   
,section #ffed of the ,internal ,revenue
 ,code of #aihf is amended by           
redesignating subsection 7n7 as         
subsection 7o7 and by inserting after   
subsection 7m7 the following new        
subsection3  7n7 ,special rule for new  
small businesses  7#a7 ,in general ,no  
addition to tax shall be imposed under  

subsection 7a7 with respect to income   
from a new small business4  7#b7 ,income
 from a new small business ,for purposes
 of paragraph 7#a71 income from a new   
small business means1 with respect to   
any individual1 income from a trade or  
business if the gross receipts of such  
trade or business for the calendar year 
ending with or within the taxable year  
of the individual do not exceed         
#a1jjj1jjj4  7#c7 ,limited application  
,paragraph 7#a7 shall not apply to      
income from a new small business for any
 taxable year beginning after #b years  
after the date on which the new small   
business is formed4  7#d7 ,controlled   
groups  7,a7 ,in general ,for purposes  
of this subsection1 all persons treated 
as a single employer under subsection   
7a7 or 7b7 of section #eb or subsection 
7m7 or 7o7 of section #dad shall be     
treated as a single trade or business4  
7,b7 ,inclusion of foreign corporations 
,for purposes of subparagraph 7,a71 in  
applying subsections 7a7 and 7b7 of     

section #eb to this section1 section    
#aefc shall be applied without regard to
 subsection 7b77#b77;,c7 thereof4  4    
7b7 ,corporations ,section #ffee of the 
,internal ,revenue ,code of #aihf is    
amended by redesignating subsection 7j7 
as subsection 7k7 and by inserting after
 subsection 7i7 the following new       
subsection3  7j7 ,special rule for new  
small businesses  7#a7 ,in general ,no  
addition to tax shall be imposed under  
subsection 7a7 with respect to income   
from a new small business4  7#b7 ,income
 from a new small business ,for purposes
 of paragraph 7#a71 income from a new   
small business means income from a trade
 or business if the gross receipts of   
such trade or business for the taxable  
year do not exceed #a1jjj1jjj4  7#c7    
,limited application ,paragraph 7#a7    
shall not apply to income from a new    
small business for any taxable year     
beginning after #b years after the date 
on which the new small business is      
incorporated4  7#d7 ,controlled groups  

7,a7 ,in general ,for purposes of this  
subsection1 all persons treated as a    
single employer under subsection 7a7 or 
7b7 of section #eb or subsection 7m7 or 
7o7 of section #dad shall be treated as 
a single trade or business4  7,b7       
,inclusion of foreign corporations ,for 
purposes of subparagraph 7,a71 in       
applying subsections 7a7 and 7b7 of     
section #eb to this section1 section    
#aefc shall be applied without regard to
 subsection 7b77#b77;,c7 thereof4  4    
7c7 ,effective date ,the amendments made
 by this section shall apply to taxable 
years beginning after ,december #ca1    
#bjad4