S.Amdt. 2516

1. Adds SEC. __. EXTENSION OF TIME FOR MAKING S CORPORATION ELECTIONS at the end of the bill

   Adds a section

   In S. 2237 · Placed on Calendar Senate

   (ii) multiplying the limitation under subparagraph (B)(ii) of such paragraph (as so in effect) by a fraction the numerator of which is the number of days in the taxable year after December 31, 2011, and the denominator of which is the number of days in the taxable year.

   Inserted: SEC. __. EXTENSION OF TIME FOR MAKING S CORPORATION ELECTIONS.

   Inserted: (a) In General.--Subsection (b) of section 1362 of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "(b) When Made.--

   Inserted: "(1) Rules for new corporations.--Except as provided in paragraph (2)--

   Inserted: "(A) In general.--An election under subsection (a) may be made by a small business corporation for any taxable year at any time during the period--

   Inserted: "(i) beginning on the first day of the taxable year for which made, and

   Inserted: "(ii) ending on the due date (with extensions) for filing the return for the taxable year.

   Inserted: "(B) Certain elections treated as made for next taxable year.--If--

   Inserted: "(i) an election under subsection (a) is made for any taxable year within the period described in subparagraph (A), but

   Inserted: "(ii) either--

   Inserted: "(I) on 1 or more days in such taxable year and before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section 1361, or

   Inserted: "(II) 1 or more of the persons who held stock in the corporation during such taxable year and before the election was made did not consent to the election, then such election shall be treated as made for the following taxable year.

   Show 28 more inserted paragraphsShow less

   Inserted: "(C) Election made after due date treated as made for following taxable year.--If--

   Inserted: "(i) a small business corporation makes an election under subsection (a) for any taxable year, and

   Inserted: "(ii) such election is made after the due date (with extensions) for filing the return for such year and on or before the due date (with extensions) for filing the return for the following taxable year, then such election shall be treated as made for the following taxable year.

   Inserted: "(2) Rules for existing c corporations.--In the case of any small business corporation which was a C corporation for the taxable year prior to the taxable year for which the election is made under subsection (a), the rules under this paragraph shall apply in lieu of the rules under paragraph (1):

   Inserted: "(A) In general.--An election under subsection (a) may be made by a small business corporation for any taxable year--

   Inserted: "(i) at any time during the preceding taxable year, or

   Inserted: "(ii) at any time during the taxable year and on or before the 15th day of the 3d month of the taxable year.

   Inserted: "(B) Certain elections made during 1st 2\1/2\ months treated as made for next taxable year.--If--

   Inserted: "(i) an election under subsection (a) is made for any taxable year during such year and on or before the 15th day of the 3d month of such year, but

   Inserted: "(ii) either--

   Inserted: "(I) on 1 or more days in such taxable year and before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section 1361, or

   Inserted: "(II) 1 or more of the persons who held stock in the corporation during such taxable year and before the election was made did not consent to the election, then such election shall be treated as made for the following taxable year.

   Inserted: "(C) Election made after 1st 2\1/2\ months treated as made for following taxable year.--If--

   Inserted: "(i) a small business corporation makes an election under subsection (a) for any taxable year, and

   Inserted: "(ii) such election is made after the 15th day of the 3d month of the taxable year and on or before the 15th day of the 3rd month of the following taxable year, then such election shall be treated as made for the following taxable year.

   Inserted: "(D) Taxable years of 2\1/2\ months or less.--For purposes of this paragraph, an election for a taxable year made not later than 2 months and 15 days after the first day of the taxable year shall be treated as timely made during such year.

   Inserted: "(3) Authority to treat late elections, etc., as timely.--If--

   Inserted: "(A) an election under subsection (a) is made for any taxable year after the date prescribed by this subsection for making such election for such taxable year or no such election is made for any taxable year, and

   Inserted: "(B) the Secretary determines that there was reasonable cause for the failure to timely make such election, the Secretary may treat such an election as timely made for such taxable year.

   Inserted: "(4) Manner of election.--Elections may be made at any time as provided in this subsection by filing a form prescribed by the Secretary. For purposes of any election described under paragraph (1), the Secretary shall provide that the election may be made on any timely filed small business corporation return for such taxable year, with the consents of all persons who held stock in the corporation during such taxable year included therewith.

   Inserted: "(5) Secretarial authority.--The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection.".

   Inserted: (b) Revocations.--Paragraph (1) of section 1362(d) of the Internal Revenue Code of 1986 is amended--

   Inserted: (1) by striking "subparagraph (D)" in subparagraph (C) and inserting "subparagraphs (D) and (E)", and

   Inserted: (2) by adding at the end the following new subparagraph:

   Inserted: "(E) Authority to treat late revocations as timely.--If--

   Inserted: "(i) a revocation under subparagraph (A) is made for any taxable year after the date prescribed by this paragraph for making such revocation for such taxable year or no such revocation is made for any taxable year, and

   Inserted: "(ii) the Secretary determines that there was reasonable cause for the failure to timely make such revocation, the Secretary may treat such a revocation as timely made for such taxable year.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to elections for taxable years beginning after the date of the enactment of this Act.

   Original wording

   At the end, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed