S. 1855 — Introduced in Senate

II 113th CONGRESS 1st Session S. 1855 IN THE SENATE OF THE UNITED STATES December 18, 2013Mr. Cardin (for himself and Mr. Roberts) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to make permanent the reduced recognition period for built-in gains for S corporations. 1. Reduced recognition period for built-in gains made permanent (a) In general Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended— (1) by striking subparagraphs (A), (B), (C), and (D), (2) by redesignating subparagraph (E) as subparagraph (B), and (3) by inserting before subparagraph (B) (as so redesignated) the following new subparagraph: (A) In general The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2013.