Summary: S.2156 — 116th Congress (2019-2020)All Information (Except Text)

There is one summary for S.2156. Bill summaries are authored by CRS.

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Introduced in Senate (07/18/2019)

S Corporation Modernization Act of 2019

This bill modifies the tax treatment of  S corporations (pass thru entities) to

  • increase from 25% to 60% of S corporation gross receipts the threshold for taxing S corporations with passive investment income;
  • eliminate a provision terminating the status of  S corporations with excessive passive investment income for three consecutive years;
  • permit S corporations to have individual retirement accounts as shareholders;
  • allow an adjustment to the basis of an S corporation's assets upon the death of a shareholder, in the form of a 15-year amortization deduction; and
  • permit the Internal Revenue Service to treat a late revocation of  S corporation status as timely if it finds there was reasonable cause for failure to make a timely revocation.