Sec. 3606. Extension of time for making S corporation elections
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/bill/113/hr/1/ih/section-3606A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(b)of section 1362 is amended to read as follows: An election under subsection
(a)may be made by a small business corporation for any taxable year not later than the due date for filing the return of the S corporation for such taxable year (including extensions). If— an election under subsection
(a)is made for any taxable year within the period described in paragraph (1), but either— 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 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. If— 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 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. Except as otherwise provided by the Secretary, an election under subsection
(a)for any taxable year may be made on a timely filed return of the S corporation for such taxable year. The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection. . Section 1361(b)(3)(B) is amended by adding at the end the following flush sentence: Rules similar to the rules of section 1362(b) shall apply with respect to any election under clause (ii). . Section 1361(d)(2) is amended by striking subparagraph (D). Paragraph
(1)of section 1362(d) is amended— by striking subparagraph
(D)in subparagraph
(C)and inserting subparagraphs
(D)and
(E), and by adding at the end the following new subparagraph: If— 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 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. . Except as otherwise provided in this subsection, the amendments made by this section shall apply to elections for taxable years beginning after December 31, 2014. The amendments made by subsection
(c)shall apply to revocations after December 31, 2014.