,,ii #aad? ,,congress #a/ ,session ,s4 #ahbg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #bb1 #bjae ,mr4 ,vitt] introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to improve ! tax treatm5t ( small bus9esses4 #a4 ,%ort title1 etc 7a7 ,%ort title ,?is ,act may be cit$ z ! ,small ,bus9ess ,tax ,compliance ,relief ,act ( #bjae4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title1 etc4 ,,title ,i--,small bus9ess tax re=m ,sec4 #aja4 ,expansion ( ca% acc\nt+ ?re%old4 ,sec4 #ajb4 ,modification ( ,safe ,h>bor = ,exp5s+ ( ,acquisition or ,production ,co/s ( ,tangible ,prop]ty4 ,sec4 #ajc4 ,removal ( comput] equipm5t f li/$ prop]ty4 ,sec4 #ajd4 ,d$uction = heal? insurance co/s 9 comput+ self-employm5t taxes4 ,sec4 #aje4 ,flexible retirem5t acc\nt = small bus9esses4 ,sec4 #ajf4 ,repeal ( simple plans & simple ,i,r,as4 ,sec4 #ajg4 ,modification ( rules relat+ to ! t]m9ation ( p>tn]%ips & ,s corporations4 ,sec4 #ajh4 ,repeal ( special rules = top-heavy plans4 ,,title ,,ii--,provisions relat$ to ! ,int]nal ,rev5ue ,s]vice ,sec4 #bja4 ,requirem5t to conv5e small bus9ess review panels4 ,sec4 #bjb4 ,p5alty waiv]s 9 cases ( good fai? ef=ts4 ,sec4 #bjc4 ,inflation adju/m5ts = c]ta9 provisions4 ,sec4 #bjd4 ,report on uni=m def9itions4 ,sec4 #bje4 ,report on improvem5ts to cu/om] s]vice4 ,sec4 #bjf4 ,reasonable cause exception = failure to report c]ta9 transactions4 ,sec4 #bjg4 ,reasonable cause exception4 ,sec4 #bjh4 ,return due date modifications4 ,,title ,,iii--,provisions relat$ to />t-up bus9esses ,sec4 #cja4 ,modification ( application ( rules = nonqualifi$ def]r$ comp5sation plans4 ,sec4 #cjb4 ,r$uction 9 hold+ p]iod = qualifi$ small bus9ess /ock4 ,sec4 #cjc4 ,ext5sion ( rollov] p]iod = qualifi$ small bus9ess /ock4 ,i ,small bus9ess tax re=m #aja4 ,expansion ( ca% acc\nt+ ?re%old 7a7 ,9 g5]al 7#a7 ,9 g5]al ,p>agraph 7#c7 ( section #ddh7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #e1jjj1jjj 9 ! text & 9 ! head+ & ins]t+ #aj1jjj1jjj4 7#b7 ,con=m+ am5dm5ts ,section #ddh7;c7 ( su* ,code is am5d$-- 7,a7 by /rik+ #e1jjj1jjj ea* place x appe>s 9 ! text & 9 ! head+ ( p>agraph 7#a7 & ins]t+ #aj1jjj1jjj1 & 7,b7 by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjae1 ! doll> am\nt conta9$ 9 subsection 7b77#c7 & p>agraph 7#a7 ( ?is subsection %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 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 by sub/itut+ cal5d> ye> #bjad = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 ,if any am\nt z adju/$ "u ?is subp>agraph is n a multiple ( #ajj1jjj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #ajj1jjj4 4 7b7 ,exemption f inv5tory requirem5t ,section #dga ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7c7 z subsection 7d7 & by ins]t+ aft] subsection 7b7 ! foll[+ new subsection3 7c7 ,section ,n ,to ,apply to ,c]ta9 ,ca% ,me?od ,taxpay]s ,if a taxpay]-- 7#a7 w\ld o!rwise be requir$ to use inv5tories "u ?is section = any taxable ye>1 b 7#b7 ! taxpay] meets ! gross receipts te/ ( section #ddh7;b7 = ! taxable ye> & is eligible & elects to use ! ca% receipts & disbursem5ts me?od ( acc\nt+ = ! taxable ye>1 !n ! requirem5t to use inv5tories %all n apply to ! taxpay] = ! taxable ye>4 4 7c7 ,effective date & special rule 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjad4 7#b7 ,*ange 9 me?od ( acc\nt+ ,9 ! case ( any taxpay] *ang+ ! taxpay]'s me?od ( acc\nt+ = any taxable ye> "u ! am5dm5ts made by ?is section-- 7,a7 su* *ange %all be treat$ z initiat$ by ! taxpay]2 & 7,b7 su* *ange %all be treat$ z made ) ! cons5t ( ! ,secret>y ( ! ,treasury4 #ajb4 ,modification ( ,safe ,h>bor = ,exp5s+ ( ,acquisition or ,production ,co/s ( ,tangible ,prop]ty 7a7 ,requirem5t ,to ,modify ,safe ,h>bor ,! ,secret>y ( ! ,treasury or 8 delegate %all1 )9 #ahj days aft] ! date ( enactm5t ( ?is ,act1 modify ,treasury ,regulations section #a4bfc7;a7-#a7;f7 by-- 7#a7 increas+ ! am\nt ( ! de m9imis safe h>bor = taxpay]s )\t applicable f9ancial /atem5ts f #ejj to #b1ejj1 7#b7 requir+ adequate records %[+ ! doll> am\nt be+ exp5s$ 9 lieu ( acc\nt+ proc$ures 9 place at ! beg9n+ ( ! taxable ye>1 & 7#c7 modify+ ! def9ition ( applicable f9ancial /atem5t to include review$ f9ancial /atem5ts4 7b7 ,effective date ,! modifications requir$ by subsection 7a7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjad4 #ajc4 ,removal ( comput] equipm5t f li/$ prop]ty 7a7 ,9 g5]al ,section #bhj;,f7d77#d77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ & at ! end ( clause 7iii7 & by /rik+ clause 7iv74 7b7 ,con=m+ am5dm5t ,section #bhj;,f7d77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ subp>agraph 7,b7 & by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,b74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajd4 ,d$uction = heal? insurance co/s 9 comput+ self-employm5t taxes 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #afb7l7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ = taxable ye>s beg9n+ be=e ,janu>y #a1 #bjaj1 or aft] ,decemb] #ca1 #bjaj & ins]t+ = taxable ye>s beg9n+ be=e ,janu>y #a1 #bjae44 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjad4 #aje4 ,flexible retirem5t acc\nt = small bus9esses 7a7 ,9 g5]al ,section #djh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7r7 z subsection 7s7 & by ins]t+ aft] subsection 7q7 ! foll[+ new subsection3 7r7 ,flexible retirem5t acc\nt def9$ 7#a7 ,9 g5]al ,= purposes ( ?is title1 ! t]m flexible retirem5t acc\nt means an individual retirem5t acc\nt or individual retirem5t annuity ) respect to :i* ! requirem5ts ( p>agraphs 7#b71 7#c71 7#d71 & 7#g7 are met4 7#b7 ,ma9ta9$ by small bus9ess 7,a7 ,9 g5]al ,?is p>agraph is satisfi$ = a ye> ) respect to a flexible retirem5t acc\nt t is "p ( a plan ( an employ] if ! employ] has n m ?an #ajj full-"t employees on ! la/ day ( ! previ\s ye>4 7,b7 ,aggregation rules ,= purposes ( subp>agraph 7,a71 all employees ( any trades or bus9ess 7:e!r or n incorporat$7 :i* are "u common control %all be treat$ z employ$ by a s+le employ]4 7#c7 ,p>ticipation requirem5ts ,?is p>agraph is satisfi$ ) respect to a flexible retirem5t acc\nt = a ye> only if = su* ye> ! employ] ma9ta9s a flexible retirem5t acc\nt on behalf ( ea* employee :o-- 7,a7 has atta9$ age #ba1 & 7,b7 receiv$ n less ?an #c1cjj 9 comp5sation 7)9 ! mean+ ( section #dae7;c77#c77 f ! employ] 9 any cal5d> qu>t] dur+ ! previ\s ye>4 7#d7 ,automatic enrollm5t2 employee may elect n to p>ticipate ,?is p>agraph is satisfi$ ) respect to a flexible retirem5t acc\nt t is "p ( a plan ( an employ] if "u ! t]ms ( ! plan-- 7,a7 ea* employee describ$ 9 p>agraph 7#c7 7)\t reg>d to p>agraph 7#e77-- 7i7 may elect-- 7,i7 to h ! employ] make contributions on behalf ( ! employee to a flexible retirem5t acc\nt1 or 7,,ii7 to h su* paym5ts paid to ! employee directly 9 ca%1 & 7ii7 is deem$ to h made ! election "u clause 7i77,i71 effective z ( ! fir/ day ( ! fir/ cal5d> qu>t] beg9n+ aft] ! employee becomes an employee describ$ 9 p>agraph 7#c71 9 an am\nt equal to #c p]c5t ( ! employee's comp5sation1 until ! employee specifically elects n to h su* contributions made or to h contributions made 9 a diff]5t am\nt1 & 7,b7 am\nts contribut$ pursuant clause 7i7 or 7ii7 ( subp>agraph 7,a7 are inve/$ 9 a div]sifi$ common /ock fund *os5 by ! f9ancial in/itution hold+ ! flexible retirem5t acc\nt until ! employee specifically elects to direct su* contributions to a diff]5t inve/m5t option4 7#e7 ,inclusion ( self-employ$ individuals ,= purposes ( ?is subsection1 ! t]m employee includes an employee z def9$ 9 section #dja7;c77#a74 ,= purposes ( apply+ ! limitations ( sections #djb7;h71 #djd7;h71 & #dae7;c77#a77;,a7 ) respect to an employee describ$ 9 ! prec$+ s5t5ce1 ! t]m comp5sation has ! mean+ giv5 9 subsection 7p77#f77;,a77ii74 7#f7 ,employ] contributions ,! employ] ma9ta9+ a flexible retirem5t acc\nt may make qualifi$ nonelective contributions 7z def9$ 9 section #dja7m77#d77;,c77 to ! flexible retirem5t acc\nts ( employees describ$ 9 p>agraph 7#c71 b only if su* contributions made ) respect to all su* employees be> a uni=m relation%ip to ! comp5sation ( ! employees4 7#g7 ,f9ancial in/itutions ,?is p>agraph is satisfi$ ) respect to a flexible retirem5t acc\nt if-- 7,a7 su* acc\nt is ma9ta9$ at a f9ancial in/itution1 includ+ a bank1 cr$it union1 insurance company1 brok] or deal] regi/]$ ) ! ,securities & ,ex*ange ,commission1 & su* o!r entities z ! ,secret>y may by regulation designate1 7,b7 su* f9ancial in/itution-- 7i7 provides = n less ?an #c inve/m5t options among :i* ! employee may *oose to direct ! contributions to & balances held 9 ! employee's flexible retirem5t acc\nt1 ea* ( :i* is div]sifi$ & has mat]ially diff]5t risk & return *>act]i/ics1 & 7ii7 provides a qu>t]ly report to ea* employee ) respect to :om x holds a flexible retirem5t acc\nt describ+ ! contributions to ! acc\nt1 )drawals f ! acc\nt1 & inve/m5t p]=mance ( ! acc\nt1 & 7,c7 ! contributions to & balances held 9 ! flexible retirem5t acc\nt ( an employee may n be inve/$ 9 securities ( ! employ] ma9ta9+ su* acc\nt4 4 7b7 ,limitation on d$uctions by employ] ,subsection 7h7 ( section #djd ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ p5sions 9 ! head+ & ins]t+ p5sions & flexible retirem5t acc\nts1 7#b7 by /rik+ a simplifi$ employee p5sion ea* place x appe>s 9 p>agraph 7#a7 & ins]t+ a simplifi$ employee p5sion or a flexible retirem5t acc\nt1 & 7#c7 by /rik+ ,= purposes ( subsection 7a77#g71 a simplifi$ employee p5sion %all be treat$ z if x 7 9 p>agraph 7#c7 & ins]t+ ,9 ! case ( a simplifi$ employee p5sion or a flexible retirem5t acc\nt1 section 7a77#g7 %all be appli$ by treat+ su* p5sion or acc\nt z if x 74 7c7 ,taxability ( b5efici>y ,subsection 7h7 ( section #djb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ p5sions 9 ! head+ & ins]t+ p5sions & flexible retirem5t acc\nts1 7#b7 by /rik+ #djh7k77 9 p>agraph 7#a7 & ins]t+ #djh7k77 or a flexible retirem5t acc\nt 7z def9$ 9 section #djh7r771 7#c7 by /rik+ section #djh7k77#f7 9 p>agraph 7#a77;,b7 & ins]t+ subsection 7k77#f7 or 7r77#d7 ( section #djh1 7#d7 by /rik+ ! simplifi$ employee p5sion ea* place x appe>s 9 p>agraphs 7#a77;,b7 & 7#b77;,a7 & ins]t+ ! simplifi$ employee p5sion or flexible retirem5t acc\nt1 7#e7 by /rik+ a simplifi$ employee p5sion ea* place x appe>s 9 p>agraphs 7#b7 & 7#c7 & ins]t+ a simplifi$ employee p5sion or flexible retirem5t acc\nt1 & 7#f7 by /rik+ r$uc$ 9 ! case 9 p>agraph 7#b77;,b7 & ins]t+ r$uc$1 ) respect to a simplifi$ employee p5sion1 9 ! case4 7d7 ,con=m+ am5dm5ts 7#a7 ,subp>agraph 7,a7 ( section #bai7;g77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or at ! end ( clause 7v7 & by add+ at ! end ! foll[+ new clause3 7vii7 a flexible retirem5t acc\nt 7)9 ! mean+ ( section #djh7r771 or 4 7#b7 ,p>agraph 7#f7 ( section #bhj;,g7b7 ( su* ,code is am5d$ by /rik+ or at ! end ( subp>agraph 7,c71 by /rik+ ! p]iod at ! end ( subp>agraph 7,d7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new subp>agraph3 7,e7 a flexible retirem5t acc\nt 7z def9$ 9 section #djh7r774 4 7#c7 ,subsection 7j7 ( section #djh ( su* ,code is am5d$-- 7,a7 by /rik+ p5sions 9 ! head+ & ins]t+ p5sions & flexible retirem5t acc\nts1 & 7,b7 by /rik+ p5sion1 & ins]t+ p5sion or flexible retirem5t acc\nt14 7#d7 ,subsections 7b71 7c71 7m77#d77;,b71 7n77#c77;,b71 & 7u77#a77;,c7 ( section #dad ( su* ,code are ea* am5d$ by ins]t+ 1 #djh7r7 aft] #djh7p74 7#e7 ,p>agraph 7#f7 ( section #dad7u7 ( su* ,code is am5d$ by ins]t+ 1 any flexible retirem5t acc\nt "u section #djh7r7 aft] #djh7p74 7#f7 ,subp>agraph 7,b7 ( section #dad7v77#c7 ( su* ,code is am5d$ by ins]t+ 1 #djh7r7 aft] #djh7k74 7#g7 ,clause 7iv7 ( section #dad7v77#f77;,a7 ( su* ,code is am5d$ by /rik+ 7k7 or 7p7 & ins]t+ 7k71 7p71 or 7r74 7#h7 ,p>agraph 7#e7 ( section #dad7w7 ( su* ,code is am5d$ by /rik+ & at ! end ( subp>agraph 7,d71 by /rik+ ! p]iod at ! end ( subp>agraph 7,e7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new subp>agraph3 7,f7 a flexible retirem5t acc\nt 7z def9$ 9 section #djh7r774 4 7#i7 ,p>agraph 7#b7 ( section #dae7;a7 ( su* ,code is am5d$-- 7,a7 by /rik+ or at ! end ( subp>agraph 7,b71 7,b7 by /rik+ ! comma at ! end ( subp>agraph 7,c7 & ins]t+ 1 or1 7,c7 by ins]t+ aft] subp>agraph 7,c7 ! foll[+ new subp>agraph3 7,d7 a flexible retirem5t acc\nt describ$ 9 section #djh7r71 1 7,d7 by /rik+ or p5sion & ins]t+ p5sion1 or acc\nt1 & 7,e7 by /rik+ or #djh7k7 & ins]t+ #djh7k71 or #djh7r74 7#aj7 ,subp>agraph 7,c7 ( section #caba7;a77#e7 ( su* ,code is am5d$ by ins]t+ 1 or a flexible retirem5t acc\nt 7z def9$ 9 section #djh7r7 aft] #djh7k77#f74 7#aa7 ,subp>agraph 7,c7 ( section #ccjf7;a77#e7 ( su* ,code is am5d$ by ins]t+ 1 or a flexible retirem5t acc\nt 7z def9$ 9 section #djh7r7 aft] #djh7k77#f74 7#ab7 ,subp>agraph 7,a7 ( section #digb7;d77#a7 ( su* ,code is am5d$ by /rik+ & at ! end ( clause 7iii71 by /rik+ ! p]iod at ! end ( clause 7iv7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7v7 any flexible retirem5t acc\nt 7)9 ! mean+ ( section #djh7r774 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to contributions made aft] ,decemb] #ca1 #bjae4 #ajf4 ,repeal ( simple plans & simple ,i,r,as 7a7 ,simple #dja7k7 plans ,p>agraph 7#aa7 ( section #dja7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,t]m9ation ,?is p>agraph %all n apply to any ca% or def]r$ arrangem5t adopt$ aft] ,decemb] #ca1 #bjaf4 4 7b7 ,simple ,i,r,as ,subsection 7p7 ( section #djh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#aa7 ,t]m9ation ,?is subsection %all n apply to any plan e/abli%$ aft] ,decemb] #ca1 #bjaf4 4 #ajg4 ,modification ( rules relat+ to ! t]m9ation ( p>tn]%ips & ,s corporations 7a7 ,no t]m9ation ( p>tn]%ip on sale or ex*ange ( assets 7#a7 ,9 g5]al ,section #gjh7;b77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ only if & all t foll[s & ins]t+ only if no "p ( any bus9ess1 f9ancial op]ation1 or v5ture ( ! p>tn]%ip cont9ues to be c>ri$ on by any ( its p>tn]s 9 a p>tn]%ip44 7#b7 ,con=m+ am5dm5ts 7,a7 ,section #afh7;i77#g77;,b7 ( su* ,code is am5d$ by /rik+ ! la/ s5t5ce4 7,b7 ,section #gdc7;e7 ( su* ,code is am5d$ by /rik+ p>agraph 7#d74 7,c7 ,section #ggd ( su* ,code is am5d$ by /rik+ subsection 7c74 7b7 ,no t]m9ation ( ,s corporation /atus due to excessive passive inve/m5t income ,p>agraph 7#c7 ( section #acfb7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,d7 ,t]m9ation ,?is p>agraph %all n apply to taxable ye>s end+ aft] ! date ( ! enactm5t ( ! ,small ,bus9ess ,tax ,compliance ,relief ,act ( #bjae4 4 #ajh4 ,repeal ( special rules = top-heavy plans ,section #daf ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7j7 ,t]m9ation ,?is section %all n apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ! ,small ,bus9ess ,tax ,compliance ,relief ,act ( #bjae4 4 ,,ii ,provisions relat$ to ! ,int]nal ,rev5ue ,s]vice #bja4 ,requirem5t to conv5e small bus9ess review panels ,section #fji7;d7 ( title #e1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#b71 by /rik+ & at ! end2 7#b7 9 p>agraph 7#c71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7#d7 ! ,int]nal ,rev5ue ,s]vice4 4 #bjb4 ,p5alty waiv]s 9 cases ( good fai? ef=ts ,! ,commission] ( ,int]nal ,rev5ue may waive ! application ( any provision ( ! ,int]nal ,rev5ue ,code ( #aihf 7o!r ?an a crim9al p5alty7 if x is %[n t ! taxpay] act$ 9 good fai? or failure to comply ) ! provision 0 due to reasonable cause4 #bjc4 ,inflation adju/m5ts = c]ta9 provisions 7a7 ,9 g5]al ,*apt] #gg ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #gebi4 ,inflation adju/m5ts 7a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjae1 ea* ( ! specifi$ doll> am\nts %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 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjad = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7b7 ,specifi$ doll> am\nts ,= purposes ( subsection 7a71 ! specifi$ doll> am\nts are-- 7#a7 ! #ej1jjj am\nt 9 section #gi7;a77#a71 7#b7 ea* ( ! #e1bej am\nts 9 section #abg7;a77#b71 7#c7 ea* ( ! #ejj am\nts 9 p>agraphs 7#aa77;,a71 7#aa77;,b71 & 7#ab7 ( section #agj7;f71 7#d7 ! #e1jjj am\nt 9 section #agj7;f77#aa77;,c71 7#e7 ! #aj1jjj1jjj am\nt 9 section #bfc;,a7b77#b71 7#f7 ea* ( ! doll> am\nts 9 section #bgd7;b77#a71 7#g7 ea* ( ! #djj am\nts 9 section #bgd7;j71 7#h7 ! #a1fjj am\nt 9 section #bgd7;j77#b77;,b71 7#i7 ! #aj1jjj1jjj am\nt 9 section #abjb7;b77#a71 7#aj7 ea* ( ! #ej1jjj1jjj am\nts 9 section #abjb7;d77#a71 7#aa7 ! #ej1jjj am\nt 9 section #abdd7;b77#a71 & 7#ab7 ! #a1jjj1jjj 9 section #abdd7;c77#c77;,a74 7c7 ,r\nd+ 7#a7 ,any increase det]m9$ "u p>agraph 7#e71 7#i71 or 7#aj7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #ajj1jjj4 7#b7 ,any increase det]m9$ "u p>agraph 7#a71 7#d71 7#aa71 or 7#ab7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #a1jjj4 7#c7 ,any increase det]m9$ "u p>agraph 7#b7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #ejj4 7#d7 ,any increase det]m9$ "u p>agraph 7#c71 7#g71 or 7#h7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #ajj4 7#e7 ,any increase det]m9$ "u p>agraph 7#f7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #e4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #abjb7;b77#c7 ( su* ,code is am5d$ by /rik+ p>agraph 7#a77;,a7 %all be appli$ by sub/itut+ #e1jjj1jjj = #aj1jjj1jjj & ins]t+ ! am\nt "u p>agraph 7#a77;,a7 %all be #ej p]c5t ( su* doll> am\nt 7det]m9$ )\t reg>d to ?is p>agraph74 7#b7 ,section #abdd7;b77#b7 ( su* ,code is am5d$ by /rik+ #ajj1jjj & ins]t+ #bjj p]c5t ( ! am\nt "u p>agraph 7#a74 7c7 ,cl]ical am5dm5t ,! table ( sections = *apt] #gg ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #gebi4 ,inflation adju/m5ts4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #bjd4 ,report on uni=m def9itions ,n lat] ?an ,june #cj1 #bjaf1 ! ,commission] ( ,int]nal ,rev5ue %all submit to ! ,committee on ,small ,bus9ess & ,entrepr5eur%ip ( ! ,s5ate1 ! ,committee on ,f9ance ( ! ,s5ate1 & ! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives a report detail+ *anges 9 law to make /atutory def9itions 9 ! ,int]nal ,rev5ue ,code ( #aihf relat+ to small bus9esses consi/5t across diff]5t provisions ( su* ,code4 ,su* report %all include recomm5dations on word+ su* def9itions 9 a mann] t is easy to und]/& = a layman n famili> ) ! ,int]nal ,rev5ue ,code ( #aihf4 #bje4 ,report on improvem5ts to cu/om] s]vice ,n lat] ?an ,june #cj1 #bjaf1 ! ,commission] ( ,int]nal ,rev5ue %all submit to ! ,committee on ,small ,bus9ess & ,entrepr5eur%ip ( ! ,s5ate1 ! ,committee on ,f9ance ( ! ,s5ate1 & ! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives a report detail+ specific ways to improve cu/om] s]vice to small bus9esses1 includ+ objectively measurable goals = h[ to r$uce response times4 #bjf4 ,reasonable cause exception = failure to report c]ta9 transactions 7a7 ,9 g5]al ,subsection 7d7 ( section #fgjg;,a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7d7 ,reasonable cause waiv] ,no p5alty %all be impos$ "u ?is section ) respect to any failure if x is %[n t su* failure is due to reasonable cause & n to willful neglect4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #fffd7;d77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ if ! p5alty = su* failure 0 resc9d$ "u section #fgjg;,a7d7 & ins]t+ if x is %[n t su* failure is due to reasonable cause & n to willful neglect4 7#b7 ,section #fgjg7;c7 ( su* ,code is am5d$ to read z foll[s3 7c7 ,reasonable cause waiv] ,no p5alty %all be impos$ "u ?is section ) respect to any failure if x is %[n t su* failure is due to reasonable cause & n to willful neglect4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 #bjg4 ,reasonable cause exception 7a7 ,9 g5]al ,no assessable p5alty or addition to tax %all be impos$ "u ! ,int]nal ,rev5ue ,code ( #aihf if x is %[n t an action1 or failure to act1 by ! taxpay] ) reg>d to any mat]ial elem5t 0 due to reasonable cause & ! taxpay] act$ 9 good fai?4 7b7 ,coord9ation ,subsection 7a7 %all n apply to any assessable p5alty or addition to tax = :i* !re is a provision ( ! ,int]nal ,rev5ue ,code :i* provides = ! nonapplication ( su* p5alty or addition if ! taxpay]'s action 7or failure to act7 0 due to reasonable cause4 #bjh4 ,return due date modifications 7a7 ,new due date = p>tn]%ip =m #ajfe1 ,s corporation =m #aabj,s1 & ,c corporation =m #aabj 7#a7 ,p>tn]%ips 7,a7 ,9 g5]al ,section #fjgb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,returns ( p>tn]%ips ,returns ( p>tn]%ips "u section #fjca made on ! basis ( ! cal5d> ye> %all be fil$ on or be=e ! #ae? day ( ,m>* foll[+ ! close ( ! cal5d> ye>1 & su* returns made on ! basis ( a fiscal ye> %all be fil$ on or be=e ! #ae? day ( ! ?ird mon? foll[+ ! close ( ! fiscal ye>4 4 7,b7 ,con=m+ am5dm5t ,section #fjgb7;a7 ( su* ,code is am5d$ by /rik+ #fjag1 or #fjca & ins]t+ or #fjag4 7#b7 ,s corporations 7,a7 ,9 g5]al ,s mu* ( subsection 7b7 ( #fjgb ( su* ,code z prec$es ! second s5t5ce !re( is am5d$ to read z foll[s3 7b7 ,returns ( c]ta9 corporations ,returns ( ,s corporations "u sections #fjab & #fjcg made on ! basis ( ! cal5d> ye> %all be fil$ on or be=e ! #ca/ day ( ,m>* foll[+ ! close ( ! cal5d> ye>1 & su* returns made on ! basis ( a fiscal ye> %all be fil$ on or be=e ! la/ day ( ! ?ird mon? foll[+ ! close ( ! fiscal ye>4 4 7,b7 ,con=m+ am5dm5ts 7i7 ,section #acfb7;b7 ( su* ,code is am5d$-- 7,i7 by /rik+ #ae? ea* place x appe>s & ins]t+ la/1 7,,ii7 by /rik+ #ba_/b ea* place x appe>s & ins]t+ #c1 & 7,,iii7 by /rik+ #b mon?s & #ae days 9 p>agraph 7#d7 & ins]t+ #c mon?s4 7ii7 ,section #acfb7;d77#a77;,c77i7 ( su* ,code is am5d$ by /rik+ #ae? & ins]t+ la/4 7iii7 ,section #acfb7;d77#a77;,c77ii7 ( su* ,code is am5d$ by /rik+ su* #ae? day & ins]t+ ! la/ day ( ! #c;d mon? !re(4 7#c7 ,con=m+ am5dm5ts relat+ to ,c corporations 7,a7 ,section #agj7;a77#b77;,b7 ( su* ,code is am5d$ by /rik+ ?ird mon? & ins]t+ #d? mon?4 7,b7 ,section #efc ( su* ,code is am5d$ by /rik+ ?ird mon? ea* place x appe>s & ins]t+ #d? mon?4 7,c7 ,section #aced7;d77#a77;,b77i7 ( su* ,code is am5d$ by /rik+ #c;d mon? & ins]t+ #d? mon?4 7,d7 ,subsections 7a7 & 7c7 ( section #fafg ( su* ,code are ea* am5d$ by /rik+ ?ird mon? & ins]t+ #d? mon?4 7,e7 ,section #fdbe7;a77#a7 ( su* ,code is am5d$ by /rik+ ?ird mon? & ins]t+ #d? mon?4 7,f7 ,subsections 7b77#b77;,a71 7g77#c71 & 7h77#a7 ( section #ffee ( su* ,code are ea* am5d$ by /rik+ #crd mon? & ins]t+ #d? mon?4 7#d7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to returns = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 7b7 ,modification ( due dates by regulation ,9 ! case ( returns = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac1 ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate %all modify appropriate regulations to provide z foll[s3 7#a7 ,! maximum ext5sion = ! returns ( p>tn]%ips fil+ ,=m #ajfe %all be a #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#b7 ,! maximum ext5sion = ! returns ( tru/s & e/ates fil+ ,=m #ajda %all be a #e-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#c7 ,! maximum ext5sion = ! returns ( employee b5efit plans fil+ ,=m #eejj %all be an automatic #c-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#d7 ,! maximum ext5sion = ! ,=ms #iij 7s]ies7 returns ( organizations exempt f income tax %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#e7 ,! maximum ext5sion = ! returns ( organizations exempt f income tax t are requir$ to file ,=m #dgbj returns ( excise taxes %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#f7 ,! maximum ext5sion = ! returns ( tru/s requir$ to file ,=m #ebbg %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#g7 ,! maximum ext5sion = ! returns ( ,black ,lung ,b5efit ,tru/s requir$ to file ,=m #fjfi returns ( excise taxes %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#h7 ,! maximum ext5sion = a taxpay] requir$ to file ,=m #hhgj %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#i7 ,! due date ( ,=m #cebj-;,a1 ,annual ,in=mation ,return ( a ,=eign ,tru/ ) a ,unit$ ,/ates ,own]1 %all be ! #ae? day ( ! #d? mon? aft] ! close ( ! tru/'s taxable ye>1 & ! maximum ext5sion %all be a #f-mon? p]iod beg9n+ on su* day4 7#aj7 ,! due date ( ,fin,c,e,n ,=m #aad 7relat+ to ,report ( ,=eign ,bank & ,f9ancial ,acc\nts7 %all be ,april #ae ) a maximum ext5sion = a #f-mon? p]iod end+ on ,octob] #ae1 & ) provision = an ext5sion "u rules simil> to ! rules ( #bf ,c4,f4,r4 #a4fjha-e4 ,= any taxpay] requir$ to file su* =m = ! fir/ "t1 ! ,secret>y ( ! ,treasury may waive any p5alty = failure to timely reque/ or file an ext5sion4 7#aa7 ,taxpay]s fil+ ,=m #cebj1 ,annual ,return to ,report ,transactions ) ,=eign ,tru/s & ,receipt ( ,c]ta9 ,=eign ,gifts1 %all be all[$ to ext5d ! "t = fil+ su* =m sep>ately f ! income tax return ( ! taxpay]1 = an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7c7 ,corporations ,p]mitt$ ,/atutory ,automatic #f-,mon? ,ext5sion ( ,income ,tax ,returns 7#a7 ,9 g5]al ,section #fjha7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #c mon?s & ins]t+ #f mon?s4 7#b7 ,effective date ,! am5dm5t made by ?is section %all apply to returns = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 ,,iii ,provisions relat$ to />t-up bus9esses #cja4 ,modification ( application ( rules = nonqualifi$ def]r$ comp5sation plans 7a7 ,rules only apply to plans ( publicly trad$ companies 7#a7 ,9 g5]al ,section #dji;,a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ nonqualifi$ def]r$ comp5sation plan ea* place x appe>s & ins]t+ specifi$ nonqualifi$ def]r$ comp5sation plan4 7#b7 ,specifi$ nonqualifi$ def]r$ comp5sation plan ,section #dji;,a7d77#a7 ( su* ,code is am5d$ to read z foll[s3 7#a7 ,specifi$ nonqualifi$ def]r$ comp5sation plan 7,a7 ,9 g5]al ,! t]m specifi$ nonqualifi$ def]r$ comp5sation plan means any plan ma9ta9$ by a specifi$ employ] = ! def]ral ( comp5sation1 o!r ?an-- 7i7 a qualifi$ employ] plan1 & 7ii7 any bona fide vacation leave1 sick leave1 comp5satory "t1 disability pay1 or dea? b5efit plan4 7,b7 ,specifi$ employ] ,= purposes ( subp>agraph 7,a71 ! t]m specifi$ employ] means any corporation-- 7i7 ! /ock ( :i* is publicly trad$ on an e/abli%$ securities m>ket or o!rwise1 or 7ii7 :i* is a memb] ( a controll$ gr\p ( corporations 7)9 ! mean+ ( section #aefc7;a71 det]m9$ )\t reg>d to section #aefc7;a77#d77 "o ( :i* is publicly trad$ on an e/abli%$ securities m>ket4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,! la/ s5t5ce ( section #dji;,a7a77#b77;,b77i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 ,= purposes ( ! prec$+ s5t5ce1 a specifi$ employee is a key employee 7z def9$ 9 section #daf7;i7 )\t reg>d to p>agraph 7#e7 !re(7 ( ! employ]44 7#b7 ,! head+ ( section #dji;,a ( su* ,code is am5d$ by ins]t+ specifi$ be=e nonqualifi$4 7#c7 ,! item relat+ to section #dji;,a 9 ! table ( sections = subp>t ,a ( "p ,i ( sub*apt] ,d ( *apt] #a ( su* ,code is by ins]t+ specifi$ be=e nonqualifi$4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts def]r$ aft] ! date ( ! enactm5t ( ?is ,act4 #cjb4 ,r$uction 9 hold+ p]iod = qualifi$ small bus9ess /ock 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #abjb7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s4 7b7 ,con=m+ am5dm5ts 7#a7 ,p>agraph 7#b7 ( section #abjb7;b7 ( su* ,code is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s1 7#b7 ,subp>agraph 7,a7 ( section #abjb7;g77#b7 ( su* ,code is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s1 7#c7 ,subp>agraph 7,c7 ( section #abjb7;h77#b7 ( su* ,code is am5d$ by /rik+ #e-ye> & ins]t+ #c-ye>1 & 7#d7 ,subp>agraph 7,a7 ( section #abjb7;j77#a7 ( su* ,code is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to /ock issu$ aft] ! date ( ! enactm5t ( ?is ,act4 #cjc4 ,ext5sion ( rollov] p]iod = qualifi$ small bus9ess /ock 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #ajde7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #fj-;day p]iod & ins]t+ #a-ye> p]iod4 7b7 ,con=m+ am5dm5t ,p>agraph 7#c7 ( section #ajde7;b7 ( su* ,code is am5d$ by /rik+ #fj-;day p]iod & ins]t+ #a-ye> p]iod4 7c7 ,effective date ,! am5dm5t made by ?is section %all apply to sales aft] ! date ( ! enactm5t ( ?is ,act4