,i #aad? ,,congress #b;d ,session ,h4 ,r4 #dicf ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #ad1 #bjaf ,mr4 ,walb]g introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committees on ,ov]sight & ,gov]nm5t ,re=m1 ,small ,bus9ess1 ,education & ! ,work=ce1 & ! ,judici>y1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to provide assi/ance to small bus9esses4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,ma9 ,/reet ,jobs & ,opportunity ,act ( #bjaf4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,title ,i--,dea? ,tax ,repeal ,sec4 #aja4 ,repeal ( e/ate & g5]ation-skipp+ transf] taxes4 ,sec4 #ajb4 ,modifications ( gift tax4 ,title ,,ii--,small ,bus9ess ,pap]work ,relief ,sec4 #bja4 ,susp5sion ( f9es = fir/-"t pap]work violations by small bus9ess conc]ns4 ,title ,,iii--,occupational lic5s+ ,sec4 #cja4 ,s5se ( ,congress reg>d+ occupational lic5s+4 ,sec4 #cjb4 ,/udy on effects ( c]ta9 occupational lic5s+ requirem5ts4 ,title ,,iv--,re/ore ,traditional ,def9ition ( ,full-,"t ,employm5t ,sec4 #dja4 ,repeal ( #cj-;h\r ?re%old = classification z full-"t employee = purposes ( ! employ] m&ate 9 ! ,pati5t ,protection & ,af=dable ,c>e ,act & replacem5t ) #dj h\rs4 ,title ,v--,small bus9ess />t-up sav+s acc\nts ,sec4 #eja4 ,e/abli%m5t ( ,small ,bus9ess ,/>t-,up ,sav+s ,acc\nts4 ,title ,,vi--,limit frivol\s lawsuits ,sec4 #fja4 ,attorney acc\ntability4 ,title ,,vii--,increase ,,irs acc\ntability ,sec4 #gja4 ,modification ( /&>ds = aw>d+ ( co/s & c]ta9 fees4 ,sec4 #gjb4 ,civil damages all[$ = reckless or int5tional disreg>d ( int]nal rev5ue laws4 ,sec4 #gjc4 ,modifications relat+ to c]ta9 (f5ses by (fic]s & employees 9 connection ) rev5ue laws4 ,sec4 #gjd4 ,modifications relat+ to civil damages = unau?oriz$ inspection or disclosure ( returns & return in=mation4 ,sec4 #gje4 ,increase 9 monet>y p5alties = c]ta9 unau?oriz$ disclosures ( in=mation4 ,i ,dea? ,tax ,repeal #aja4 ,repeal ( e/ate & g5]ation-skipp+ transf] taxes 7a7 ,e/ate tax repeal ,sub*apt] ,c ( *apt] #aa ( subtitle ,b ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #bbaj4 ,t]m9ation 7a7 ,9 g5]al ,except z provid$ 9 subsection 7b71 ?is *apt] %all n apply to ! e/ates ( dec$5ts dy+ on or aft] ! date ( ! enactm5t ( ! ,ma9 ,/reet ,jobs & ,opportunity ,act ( #bjaf4 7b7 ,c]ta9 ,di/ributions ,f ,qualifi$ ,dome/ic ,tru/s ,9 apply+ section #bjef;,a ) respect to ! surviv+ sp\se ( a dec$5t dy+ be=e ! date ( ! enactm5t ( ! ,ma9 ,/reet ,jobs & ,opportunity ,act ( #bjaf-- 7#a7 section #bjef;,a7b77#a77;,a7 %all n apply to di/ributions made aft] ! #aj-ye> p]iod beg9n+ on su* date1 & 7#b7 section #bjef;,a7b77#a77;,b7 %all n apply on or aft] su* date4 4 7b7 ,g5]ation-,skipp+ transf] tax repeal ,sub*apt] ,g ( *apt] #ac ( subtitle ,b ( su* ,code is am5d$ by add+ at ! end ! foll[+ new section3 #bffd4 ,t]m9ation ,?is *apt] %all n apply to g5]ation-skipp+ transf]s on or aft] ! date ( ! enactm5t ( ! ,ma9 ,/reet ,jobs & ,opportunity ,act ( #bjaf4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,! table ( sections = sub*apt] ,c ( *apt] #aa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #bbaj4 ,t]m9ation4 4 7#b7 ,! table ( sections = sub*apt] ,g ( *apt] #ac ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #bffd4 ,t]m9ation4 4 7d7 ,effective ,date ,! am5dm5ts made by ?is section %all apply to ! e/ates ( dec$5ts dy+1 & g5]ation-skipp+ transf]s1 on or aft] ! date ( ! enactm5t ( ?is ,act4 #ajb4 ,modifications ( gift tax 7a7 ,computation ( gift tax ,subsection 7a7 ( section #bejb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7a7 ,computation ( tax 7#a7 ,9 g5]al ,! tax impos$ by section #beja = ea* cal5d> ye> %all be an am\nt equal to ! excess (-- 7,a7 a t5tative tax1 comput$ "u p>agraph 7#b71 on ! aggregate sum ( ! taxable gifts = su* cal5d> ye> & = ea* ( ! prec$+ cal5d> p]iods1 ov] 7,b7 a t5tative tax1 comput$ "u p>agraph 7#b71 on ! aggregate sum ( ! taxable gifts = ea* ( ! prec$+ cal5d> p]iods4 7#b7 ,rate s*$ule ,if ! am\nt ) respect to :i* ! t5tative tax to be comput$ is3,! t5tative tax is3 ,n ov] #aj1jjjah ( su* am\nt4 ,ov] #aj1jjj b n ov] #bj1jjja1hjj1 plus #bj ( ! excess ov] #aj1jjj4 ,ov] #bj1jjj b n ov] #dj1jjjc1hjj1 plus #bb ( ! excess ov] #bj1jjj4 ,ov] #dj1jjj b n ov] #fj1jjjh1bjj1 plus #bd ( ! excess ov] #dj1jjj4 ,ov] #fj1jjj b n ov] #hj1jjjac1jjj1 plus #bf ( ! excess ov] #fj1jjj4 ,ov] #hj1jjj b n ov] #ajj1jjjah1bjj1 plus #bh ( ! excess ov] #hj1jjj4 ,ov] #ajj1jjj b n ov] #aej1jjjbc1hjj1 plus #cj ( ! excess ov] #ajj1jjj4 ,ov] #aej1jjj b n ov] #bej1jjjch1hjj1 plus #cb ( ! excess ( #aej1jjj4 ,ov] #bej1jjj b n ov] #ejj1jjjgj1hjj1 plus #cd ( ! excess ov] #bej1jjj4 ,ov] #ejj1jjjaee1hjj1 plus #ce ( ! excess ( #ejj1jjj4 4 7b7 ,treatm5t ( c]ta9 transf]s 9 tru/ ,section #beaa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7c7 ,treatm5t ( c]ta9 transf]s 9 tru/ ,not)/&+ any o!r provision ( ?is section & except z provid$ 9 regulations1 a transf] 9 tru/ %all be treat$ z a taxable gift "u section #bejc1 unless ! tru/ is treat$ z :olly own$ by ! donor or ! donor's sp\se "u subp>t ,e ( "p ,i ( sub*apt] ,j ( *apt] #a4 4 7c7 ,lifetime gift exemption 7#a7 ,9 g5]al ,p>agraph 7#a7 ( section #beje7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#a7 ! am\nt ( ! t5tative tax :i* w\ld be det]m9$ "u ! rate s*$ule set =? 9 section #bejb7;a77#b7 if ! am\nt ) respect to :i* su* t5tative tax is to be comput$ 7 #e1jjj1jjj1 r$uc$ by 4 7#b7 ,inflation adju/m5t ,section #beje ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subsection3 7d7 ,inflation adju/m5t 7#a7 ,9 g5]al ,9 ! case ( any cal5d> ye> aft] #bjaa1 ! doll> am\nt 9 subsection 7a77#a7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = su* cal5d> ye> by sub/itut+ cal5d> ye> #bjaj = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7#b7 ,r\nd+ ,if any am\nt z adju/$ "u p>agraph 7#a7 is n a multiple ( #aj1jjj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #aj1jjj4 4 7d7 ,con=m+ am5dm5ts 7#a7 ,! head+ = section #beje ( su* ,code is am5d$ by /rik+ ,unifi$4 7#b7 ,! item 9 ! table ( sections = sub*apt] ,a ( *apt] #ab ( su* ,code relat+ to section #beje is am5d$ to read z foll[s3 ,sec4 #beje4 ,cr$it aga9/ gift tax4 4 7#c7 ,section #bhja7;a77#a7 ( su* ,code is am5d$ by /rik+ section #bjja7;c7 z 9 effect on ! date ( su* receipt & ins]t+ section #bejb7;a77#b74 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to gifts made on or aft] ! date ( ! enactm5t ( ?is ,act4 7f7 ,transition rule 7#a7 ,9 g5]al ,= purposes ( apply+ sections #ajae7;d71 #bejb1 & #beje ( ! ,int]nal ,rev5ue ,code ( #aihf1 ! cal5d> ye> 9 :i* ?is ,act is enact$ %all be treat$ z #b sep>ate cal5d> ye>s "o ( :i* ends on ! day be=e ! date ( ! enactm5t ( ?is ,act & ! o!r ( :i* beg9s on su* date ( enactm5t4 7#b7 ,application ( section #bejd7;b7 ,= purposes ( apply+ section #bejd7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 ! cal5d> ye> 9 :i* ?is ,act is enact$ %all be treat$ z "o prec$+ cal5d> p]iod4 ,,ii ,small ,bus9ess ,pap]work ,relief #bja4 ,susp5sion ( f9es = fir/-"t pap]work violations by small bus9ess conc]ns ,section #cejf ( title #dd1 ,unit$ ,/ates ,code 7commonly ref]r$ to z ! ,pap]work ,r$uction ,act71 is am5d$ by add+ at ! end ! foll[+3 7j7 ,small bus9esses 7#a7 ,small bus9ess conc]n ,9 ?is subsection1 ! t]m small bus9ess conc]n has ! mean+ giv5 t t]m "u section #c ( ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fcb74 7#b7 ,9 g5]al ,9 ! case ( a fir/-"t violation by a small bus9ess conc]n ( a requirem5t reg>d+ ! collection ( in=mation by an ag5cy1 ! head ( ! ag5cy %all n impose a civil f9e on ! small bus9ess conc]n unless ! head ( ! ag5cy det]m9es t-- 7,a7 ! violation has ! pot5tial to cause s]i\s h>m to ! public int]e/2 7,b7 failure to impose a civil f9e w\ld imp$e or int]f]e ) ! detection ( crim9al activity2 7,c7 ! violation is a violation ( an int]nal rev5ue law or a law conc]n+ ! assessm5t or collection ( any tax1 debt1 rev5ue1 or receipt2 7,d7 ! violation 0 n correct$ on or be=e ! date t is #f mon?s aft] ! date on :i* ! small bus9ess conc]n receives notification ( ! violation 9 writ+ f ! ag5cy2 or 7,e7 except z provid$ 9 p>agraph 7#c71 ! violation pres5ts a dang] to ! public heal? or safety4 7#c7 ,dang] to public heal? or safety 7,a7 ,9 g5]al ,9 any case 9 :i* ! head ( an ag5cy det]m9es "u p>agraph 7#b77;,e7 t a violation pres5ts a dang] to ! public heal? or safety1 ! head ( ! ag5cy may1 not)/&+ p>agraph 7#b77;,e71 det]m9e n to impose a civil f9e on ! small bus9ess conc]n if ! violation is correct$ n lat] ?an #bd h\rs aft] receipt by ! own] ( ! small bus9ess conc]n ( notification ( ! violation 9 writ+4 7,b7 ,consid]ations ,9 det]m9+ :e!r to all[ a small bus9ess conc]n #bd h\rs to correct a violation "u subp>agraph 7,a71 ! head ( an ag5cy %all take into acc\nt all ( ! facts & circum/ances reg>d+ ! violation1 includ+-- 7i7 ! nature & s]i\sness ( ! violation1 includ+ :e!r ! violation is te*nical or inadv]t5t or involves willful or crim9al conduct2 7ii7 :e!r ! small bus9ess conc]n has made a good fai? ef=t to comply ) applicable laws & to rem$y ! violation )9 ! %orte/ practicable p]iod ( "t2 & 7iii7 :e!r ! small bus9ess conc]n has obta9$ a significant economic b5efit f ! violation4 7,c7 ,notice to ,congress ,9 any case 9 :i* ! head ( an ag5cy imposes a civil f9e on a small bus9ess conc]n = a violation t pres5ts a dang] to ! public heal? or safety & does n all[ ! small bus9ess conc]n #bd h\rs to correct ! violation "u subp>agraph 7,a71 ! head ( ! ag5cy %all notify ,congress reg>d+ ! det]m9ation n lat] ?an #fj days aft] ! date on :i* ! civil f9e is impos$ by ! ag5cy4 7#d7 ,limit$ to fir/-,"t violations 7,a7 ,9 g5]al ,?is subsection %all n apply to any violation by a small bus9ess conc]n ( a requirem5t reg>d+ collection ( in=mation by an ag5cy if ! small bus9ess conc]n previ\sly violat$ any requirem5t reg>d+ collection ( in=mation by ! ag5cy4 7,b7 ,o!r ag5cies ,= purposes ( mak+ a det]m9ation "u subp>agraph 7,a71 ! head ( an ag5cy %all n take into acc\nt any violation ( a requirem5t reg>d+ collection ( in=mation by ano!r ag5cy4 4 ,,iii ,occupational lic5s+ #cja4 ,s5se ( ,congress reg>d+ occupational lic5s+ ,x is ! s5se ( ,congress t-- 7#a7 ! ,dep>tm5t ( ,labor %\ld act )9 its exi/+ au?ority to r$uce employm5t b>ri]s creat$ by c]ta9 occupational lic5s+ requirem5ts1 includ+ provid+ te*nical assi/ance & dissem9at+ guidance & in=mation on be/ practices to ,/ates int]e/$ 9 increas+ economic opportunity ?r\gh lic5s+ reciprocity agreem5ts or o!r approa*es2 & 7#b7 t ,/ates %\ld =m int]/ate compacts to make x easi] = lic5s$ work]s to practice & relocate across ,/ate l9es1 :ile also enabl+ ,/ate regulators to %>e practition]s' p]=mance hi/ories4 #cjb4 ,/udy on effects ( c]ta9 occupational lic5s+ requirem5ts 7a7 ,/udy ,! ,secret>y ( ,labor %all conduct a /udy on ! effects ( occupational lic5s+ requirem5ts to det]m9e h[ su* requirem5ts may-- 7#a7 affect ! s]vice quality ( c]ta9 occupations2 7#b7 affect public safety2 & 7#c7 impose b>ri]s to entry = e/abli%+ small bus9esses1 inhibit competition1 increase co/s to consum]s1 limit hir+1 or negatively impact c]ta9 populations4 7b7 ,report ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all transmit a report to ,congress detail+ ! results ( ! /udy requir$ by subsection 7a71 includ+ any recomm5dation = legislation4 ,,iv ,re/ore ,traditional ,def9ition ( ,full-,"t ,employm5t #dja4 ,repeal ( #cj-;h\r ?re%old = classification z full-"t employee = purposes ( ! employ] m&ate 9 ! ,pati5t ,protection & ,af=dable ,c>e ,act & replacem5t ) #dj h\rs 7a7 ,full-,"t equival5ts ,p>agraph 7#b7 ( section #dihj;,h7c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by repeal+ subp>agraph 7,e71 & 7#b7 by ins]t+ aft] subp>agraph 7,d7 ! foll[+ new subp>agraph3 7,e7 ,full-"t equival5ts treat$ z full-"t employees ,solely = purposes ( det]m9+ :e!r an employ] is an applicable l>ge employ] "u ?is p>agraph1 an employ] %all1 9 addition to ! numb] ( full-"t employees = any mon? o!rwise det]m9$1 include = su* mon? a numb] ( full-"t employees det]m9$ by divid+ ! aggregate numb] ( h\rs ( s]vice ( employees :o are n full-"t employees = ! mon? by #agd4 4 7b7 ,full-,"t employees ,p>agraph 7#d7 ( section #dihj;,h7c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by repeal+ subp>agraph 7,a71 & 7#b7 by ins]t+ be=e subp>agraph 7,b7 ! foll[+ new subp>agraph3 7,a7 ,9 g5]al ,! t]m full-"t employee means1 ) respect to any mon?1 an employee :o is employ$ on av]age at lea/ #dj h\rs ( s]vice p] week4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to mon?s beg9n+ aft] ,decemb] #ca1 #bjac4 ,v ,small bus9ess />t-up sav+s acc\nts #eja4 ,e/abli%m5t ( ,small ,bus9ess ,/>t-,up ,sav+s ,acc\nts 7a7 ,9 g5]al ,*apt] #gg ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #gebi4 ,small ,bus9ess ,/>t-,up ,sav+s ,acc\nts 7a7 ,9 g5]al ,an individual or an eligible small bus9ess may ent] into an agreem5t ) ! ,secret>y to e/abli% a small bus9ess />t-up sav+s acc\nt4 7b7 ,small bus9ess />t-,up sav+s acc\nt ,= purposes ( ?is section1 ! t]m small bus9ess />t-up sav+s acc\nt means a tru/ creat$ or organiz$ 9 ! ,unit$ ,/ates = ! b5efit ( ! acc\nt b5efici>y1 b only if ! writt5 gov]n+ in/rum5t creat+ ! tru/ meets ! foll[+ requirem5ts3 7#a7 ,except z provid$ 9 subsection 7d77#c7 9 ! case ( a rollov] contribution1 no contribution w be accept$ unless x is 9 ca%1 & contributions w n be accept$ = ! taxable ye> on behalf ( any acc\nt b5efici>y 9 excess ( ! am\nt 9 effect = su* taxable ye> "u subsection 7d77#b74 7#b7 ,! tru/ee is a bank 7z def9$ 9 section #djh7n77 or su* o!r p]son :o demon/rates to ! satisfaction ( ! ,secret>y t ! mann] 9 :i* su* o!r p]son w adm9i/] ! tru/ w be consi/5t ) ! requirem5ts ( ?is section4 7#c7 ,no "p ( ! tru/ funds w be inve/$ 9 life insurance contracts4 7#d7 ,! int]e/ ( an individual 9 ! balance ( 8 acc\nt is non=feitable4 7#e7 ,! assets ( ! tru/ w n be comm+l$ ) o!r prop]ty except 9 a common tru/ fund or common inve/m5t fund4 7c7 ,eligible small bus9ess ,= purposes ( ?is section1 ! t]m eligible small bus9ess means1 ) respect to any taxable ye>1 any p]son engag$ 9 a trade or bus9ess if ! av]age numb] ( employees employ$ by su* p]son on bus9ess days dur+ ! taxable ye> 0 #ejj or few]4 7d7 ,treatm5t ( contributions 7#a7 ,9 g5]al ,!re %all be all[$ z a d$uction = ! taxable ye> an am\nt equal to s mu* ( ! acc\nt b5efici>y's contributions = ! taxable ye> to all small bus9ess />t-up sav+s acc\nts ma9ta9$ = ! b5efit ( su* b5efici>y z d n exce$ ! contribution limitations 9 effect = ! taxable ye> "u p>agraph 7#b74 7#b7 ,contribution limitation 7,a7 ,9 g5]al ,! am\nt all[able z a d$uction "u p>agraph 7#a7 ) respect to all small bus9ess />t-up sav+s acc\nts ma9ta9$ = ! b5efit ( any p]son %all n exce$ ! less] (-- 7i7 #aj1jjj1 or 7ii7 #aej1jjj1 r$uc$ by ! aggregate contributions by su* p]son = all taxable ye>s ) respect to all small bus9ess />t-up sav+s acc\nts ( ! taxpay]4 7,b7 ,co/ ( liv+ adju/m5t 7i7 ,9 g5]al ,9 ! case ( a taxable ye> beg9n+ aft] #bjaf1 ! #aj1jjj am\nt 9 subp>agraph 7,a7 %all be increas$ by an am\nt equal to-- 7,i7 su* doll> am\nt1 multipli$ by 7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjae = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7ii7 ,r\nd+ ,if any am\nt z adju/$ "u clause 7i7 is n a multiple ( #ejj1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #ejj4 7#c7 ,rollov]s f retirem5t plans n all[$ ,"u regulations prescrib$ by ! ,secret>y1 a p]son may make a rollov] contribution to a small bus9ess />t-up sav+s acc\nt only 9 ! case ( a rollov] f ano!r small bus9ess />t-up sav+s acc\nt4 7#d7 ,treat$ z d$uction = individuals & corporations ,= purposes ( *apt] #a1 ! d$uction all[$ "u p>agraph 7#a7 %all be treat$ z a d$uction specifi$ 9 "p ,,vi ( sub*apt] ,b ( *apt] #a 7relat+ to itemiz$ d$uctions = individuals & corporations74 7e7 ,treatm5t ( di/ributions 7#a7 ,tax treatm5t 7,a7 ,exclusion ( qualifi$ di/ributions ,any qualifi$ di/ribution f a small bus9ess />t-up sav+s acc\nt %all n be includible 9 gross income4 7,b7 ,inclusion ( o!r di/ributions ,any di/ribution f a small bus9ess />t-up sav+s acc\nt :i* is n a qualifi$ di/ribution %all be includ$ 9 gross income4 7#b7 ,qualifi$ di/ribution ,= purposes ( ?is subsection1 ! t]m qualifi$ di/ribution means1 ) respect to any taxable ye>1 any paym5t or di/ribution f a small bus9ess />t-up sav+s acc\nt-- 7,a7 to ! ext5t ! am\nt ( su* paym5t or di/ribution does n exce$ ! sum (-- 7i7 ! aggregate am\nts paid or incurr$ by ! taxpay] = su* taxable ye> ) respect to ! taxpay]'s trade or bus9ess = ! pur*ase ( equipm5t or facilities1 m>ket+1 tra9+1 incorporation1 & acc\nt+ fees1 & 7ii7 ! aggregate capital contributions ( ! taxpay] ) respect to an eligible small bus9ess = ! taxable ye> 7b only to ! ext5t su* am\nts are us$ by su* small bus9ess = purposes describ$ 9 clause 7i771 & 7,b7 :i*1 9 ! case ( a paym5t or di/ribution subsequ5t to ! fir/ paym5t or di/ribution f su* acc\nt 7or any pr$ecessor to su* acc\nt7-- 7i7 is made n lat] ?an ! close ( ! #e? taxable ye> beg9n+ aft] ! date ( su* fir/ paym5t or di/ribution1 & 7ii7 is made ) respect to ! same eligible small bus9ess ) respect to :i* su* fir/ paym5t or di/ribution 0 made4 7#c7 ,treatm5t aft] dea? ( acc\nt b5efici>y 7,a7 ,9 g5]al ,if1 by reason ( ! dea? ( ! acc\nt b5efici>y1 any p]son acquires ! acc\nt b5efici>y's int]e/ 9 a small bus9ess />t-up sav+s acc\nt-- 7i7 su* acc\nt %all cease to be a small bus9ess />t-up sav+s acc\nt z ( ! date ( dea?1 & 7ii7 an am\nt equal to ! fair m>ket value ( ! assets 9 su* acc\nt on su* date %all be includible-- 7,i7 9 ! case ( a p]son :o is n ! e/ate ( su* b5efici>y1 9 su* p]son's gross income = ! taxable ye> :i* includes su* date1 or 7,,ii7 9 ! case ( a p]son :o is ! e/ate ( su* b5efici>y1 9 su* b5efici>y's gross income = ! la/ taxable ye> ( su* b5efici>y4 7,b7 ,special rules 7i7 ,r$uction ( inclusion = pr$ea? exp5ses ,! am\nt includible 9 gross income "u subp>agraph 7,a7 %all be r$uc$ by ! am\nts describ$ 9 p>agraph 7#b7 :i* 7 incurr$ by ! dec$5t be=e ! date ( ! dec$5t's dea? & paid by su* p]son )9 #a ye> aft] su* date4 7ii7 ,d$uction = e/ate taxes ,an appropriate d$uction %all be all[$ "u section #fia7;c7 to any p]son 7o!r ?an ! dec$5t7 ) respect to am\nts includ$ 9 gross income "u subp>agraph 7,a77ii77,i7 by su* p]son4 7#d7 ,treatm5t = failure to be treat$ z eligible small bus9ess ,if = any taxable ye> a taxpay] :i* holds a small bus9ess />t-up sav+s acc\nt z an eligible small bus9ess ceases to be an eligible small bus9ess-- 7,a7 su* acc\nt %all cease to be a small bus9ess />t-up sav+s acc\nt1 & 7,b7 ! balance ( su* acc\nt %all be treat$ z paid out = su* taxable ye> 9 a di/ribution :i* is n a qualifi$ di/ribution4 7f7 ,special rules 7#a7 ,d5ial ( d\ble b5efit ,any d$uction or cr$it o!rwise all[$ = ! taxable ye> ) respect to am\nts describ$ 9 subsection 7e77#b77;,a7 %all be r$uc$ by an am\nt equal to ! qualifi$ di/ributions attributable to su* am\nts4 ,! adju/$ basis ( any prop]ty plac$ 9 s]vice = ! taxable ye> %all be r$uc$ by ! am\nt ( any qualifi$ di/ributions attributable to su* prop]ty4 ,= purposes ( ?is p>agraph1 qualifi$ di/ributions %all fir/ be treat$ z attributable to am\nts describ$ 9 subsection 7e77#b77;,a71 !n to prop]ty plac$ 9 s]vice = ! taxable ye>4 7#b7 ,aggregation rule ,= purposes ( ?is section1 all p]sons treat$ z a s+le employ] "u subsection 7a7 or 7b7 ( section #eb1 or subsection 7m7 or 7o7 ( section #dad1 %all be treat$ z "o p]son4 4 7b7 ,excise tax on excess contributions & nonqualifi$ di/ributions ,subtitle ,d ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new *apt]3 #ej;,a ,small bus9ess />t-up sav+s acc\nts ,sec4 #ejjj;,d4 ,tax on excess contributions to small bus9ess />t-up sav+s acc\nts4 ,sec4 #ejjj;,e4 ,tax on nonqualifi$ di/ributions f small bus9ess />t-up sav+s acc\nts4 ,sec4 #ejjj;,f4 ,cross ref]5ce4 #ejjj;,d4 ,tax on excess contributions to small bus9ess />t-up sav+s acc\nts 7a7 ,9 g5]al ,9 ! case ( a small bus9ess />t-up sav+s acc\nt 7)9 ! mean+ ( section #gebi7 !re is impos$ = ea* taxable ye> a tax 9 an am\nt equal to #f p]c5t ( ! am\nt ( ! excess contributions to su* taxpay]'s acc\nt 7det]m9$ z ( ! close ( ! taxable ye>74 7b7 ,limitation ,! am\nt ( tax impos$ by subsection 7a7 %all n exce$ #f p]c5t ( ! value ( ! acc\nt 7det]m9$ z ( ! close ( ! taxable ye>74 7c7 ,excess contributions ,= purposes ( ?is section1 9 ! case ( contributions to all small bus9ess />t-up sav+s acc\nts ma9ta9$ = ! b5efit ( a p]son1 ! t]m excess contributions means ! sum (-- 7#a7 ! excess 7if any7 (-- 7,a7 ! am\nt contribut$ to su* acc\nts = ! taxable ye>1 ov] 7,b7 ! am\nt all[able z a contribution "u section #gebi7;d77#b77;,a7 = su* taxable ye>1 & 7#b7 ! am\nt det]m9$ "u ?is subsection = ! prec$+ taxable ye>1 r$uc$ by ! sum (-- 7,a7 ! di/ributions out ( ! acc\nts = ! taxable ye>1 & 7,b7 ! excess 7if any7 (-- 7i7 ! maximum am\nt all[able z a contribution "u section #gebi7;d77#b77;,a7 = su* taxable ye>1 ov] 7ii7 ! am\nt contribut$ to su* acc\nts = su* taxable ye>4 #ejjj;,e4 ,tax on nonqualifi$ di/ributions f small bus9ess />t-up sav+s acc\nts 7a7 ,9 g5]al ,if = any taxable ye> an am\nt is paid or di/ribut$ out ( a taxpay]'s small bus9ess />t-up sav+s acc\nt1 !re is impos$ = su* taxable ye> a tax 9 an am\nt equal to #aj p]c5t ( ! portion ( su* am\nt :i* is includible 9 ! gross income ( ! taxpay]4 7b7 ,exception = disability or dea? ,subsection 7a7 %all n apply if ! paym5t or di/ribution is made aft] ! acc\nt b5efici>y becomes disabl$ )9 ! mean+ ( section #gb7m77#g7 7b only if su* b5efici>y's acc\nt 0 creat$ be=e becom+ s disabl$7 or dies4 #ejjj;,f4 ,cross ref]5ce ,= prohibit$ transactions1 see section #dige4 4 7c7 ,prohibit$ transactions 7#a7 ,9 g5]al ,p>agraph 7#a7 ( section #dige7;e7 ( su* ,code is am5d$ by /rik+ or at ! end ( subp>agraph 7,f71 by /rik+ ! p]iod at ! end ( subp>agraph & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new subp>agraph3 7,h7 a small bus9ess />t-up sav+s acc\nt 7)9 ! mean+ ( section #gebi74 4 7#b7 ,special rule = ceas+ to be a small bus9ess />t-up sav+s acc\nt ,section #dige7;c7 ( su* ,code 7relat+ to tax on prohibit$ transactions7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 ,special rule = small bus9ess />t-up sav+s acc\nt ,an individual = ^: b5efit a small bus9ess />t-up sav+s acc\nt 7)9 ! mean+ ( section #gebi7 is e/abli%$ %all be exempt f ! tax impos$ by ?is section ) respect to any transaction conc]n+ su* acc\nt 7:i* w\ld o!rwise be taxable "u ?is section7 if1 ) respect to su* transaction1 ! acc\nt ceases to be a small bus9ess />t-up sav+s acc\nt by reason ( ! application ( p>agraph 7#c7 or 7#d7 ( section #gebi7;e7 to su* acc\nt4 4 7d7 ,d$uction all[$ :e!r or n individual itemizes ,subsection 7a7 ( section #fb ( su* ,code is am5d$ by ins]t+ aft] p>agraph 7#ba7 ! foll[+ new p>agraph3 7#bb7 ,contributions to small bus9ess />t-up sav+s acc\nts ,! d$uction all[$ by section #gebi7;d77#a77;,a74 4 7e7 ,con=m+ am5dm5ts 7#a7 ,! table ( *apt]s = subtitle ,d ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,*apt] #ej;,a4 ,small ,bus9ess ,/>t-,up ,sav+s ,acc\nts 4 7#b7 ,! table ( sections = *apt] #gg ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #gebh ! foll[+ new item3 ,sec4 #gebi4 ,small ,bus9ess ,/>t-,up ,sav+s ,acc\nts4 4 7f7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 ,,vi ,limit frivol\s lawsuits #fja4 ,attorney acc\ntability 7a7 ,sanctions "u rule #aa ,rule #aa7;c7 ( ! ,f$]al ,rules ( ,civil ,proc$ure is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ may & ins]t+ %all2 7#b7 9 p>agraph 7#b71 by /rik+ ,rule #e & all t foll[s ?r\gh motion4 & ins]t+ ,rule #e42 & 7#c7 9 p>agraph 7#d71 by /rik+ situat$ & all t foll[s ?r\gh ! end ( ! p>agraph & ins]t+ situat$1 & to comp5sate ! p>ties t 7 injur$ by su* conduct4 ,subject to ! limitations 9 p>agraph 7#e71 ! sanction %all consi/ ( an ord] to pay to ! p>ty or p>ties ! am\nt ( ! reasonable exp5ses incurr$ z a direct result ( ! violation1 includ+ reasonable attorneys' fees & co/s4 ,! c\rt may also impose additional appropriate sanctions1 su* z /rik+ ! plead+s1 dismiss+ ! suit1 or o!r directives ( a non-monet>y nature1 or1 if w>rant$ = effective det]r5ce1 an ord] direct+ paym5t ( a p5alty into ! c\rt44 7b7 ,rule ( con/ruction ,no?+ 9 ?is ,act or an am5dm5t made by ?is ,act %all be con/ru$ to b> or imp$e ! ass]tion or developm5t ( new claims1 def5ses1 or rem$ies "u ,f$]al1 ,/ate1 or local laws1 includ+ civil rights laws1 or "u ! ,con/itution ( ! ,unit$ ,/ates4 ,,vii ,increase ,,irs acc\ntability #gja4 ,modification ( /&>ds = aw>d+ ( co/s & c]ta9 fees 7a7 ,small bus9esses eligible )\t reg>d to net wor? ,subp>agraph 7,d7 ( section #gdcj7;c77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( clause 7i77,,ii71 by /rik+ ! p]iod at ! end ( clause 7ii7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7iii7 9 ! case ( an eligible small bus9ess1 ! net wor? limitation 9 clause 7ii7 ( su* section %all n apply4 4 7b7 ,eligible small bus9ess ,p>agraph 7#d7 ( section #gdcj7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,eligible small bus9ess ,= purposes ( subp>agraph 7,d77iii71 ! t]m eligible small bus9ess means1 ) respect to any proce$+ comm5c$ 9 a taxable ye>-- 7i7 a corporation ! /ock ( :i* is n publicly trad$1 7ii7 a p>tn]%ip1 or 7iii7 a sole proprietor%ip1 if ! av]age annual gross receipts ( su* corporation1 p>tn]%ip1 or sole proprietor%ip = ! #c-taxable-ye> p]iod prec$+ su* taxable ye> does n exce$ #ej1jjj1jjj4 ,= purposes ( apply+ ! te/ "u ! prec$+ s5t5ce1 rules simil> to ! rules ( p>agraphs 7#b7 & 7#c7 ( section #ddh7;c7 %all apply4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to proce$+s comm5c$ aft] ! date ( ! enactm5t ( ?is ,act4 #gjb4 ,civil damages all[$ = reckless or int5tional disreg>d ( int]nal rev5ue laws 7a7 ,increase 9 am\nt ( damages ,section #gdcc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #a1jjj1jjj 7#ajj1jjj1 9 ! case ( neglig5ce7 & ins]t+ #c1jjj1jjj 7#cjj1jjj1 9 ! case ( neglig5ce74 7b7 ,ext5sion ( "t ,to br+ action ,section #gdcc7;d77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #b ye>s & ins]t+ #e ye>s4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to actions ( employees ( ! ,int]nal ,rev5ue ,s]vice aft] ! date ( ! enactm5t ( ?is ,act4 #gjc4 ,modifications relat+ to c]ta9 (f5ses by (fic]s & employees 9 connection ) rev5ue laws 7a7 ,increase 9 p5alty ,section #gbad ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ #aj1jjj 9 subsection 7a7 & ins]t+ #be1jjj1 & 7#b7 by /rik+ #e1jjj 9 subsection 7b7 & ins]t+ #aj1jjj4 7b7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 #gjd4 ,modifications relat+ to civil damages = unau?oriz$ inspection or disclosure ( returns & return in=mation 7a7 ,increase 9 am\nt ( damages ,subp>agraph 7,a7 ( section #gdca7;c77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #a1jjj & ins]t+ #aj1jjj4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to inspections & disclosure occurr+ on & aft] ! date ( ! enactm5t ( ?is ,act4 #gje4 ,increase 9 monet>y p5alties = c]ta9 unau?oriz$ disclosures ( in=mation 7a7 ,9 g5]al ,p>agraphs 7#a71 7#b71 7#c71 & 7#d7 ( section #gbac7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf are ea* am5d$ by /rik+ #e1jjj & ins]t+ #aj1jjj4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to disclosures made aft] ! date ( ! enactm5t ( ?is ,act4