Sec. 203. Disallowance of deduction for compensation for certain employers failing to provide SAVE UP Account contribution program
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Section 162 of the Internal Revenue Code of 1986 is amended by redesignating subsection
(q)as subsection
(r)and by inserting after subsection
(p)the following new subsection: In the case of an applicable employer who fails to maintain a SAVE UP Account contribution program for any calendar year beginning during the taxable year, no deduction shall be allowed under this chapter for any remuneration made by the employer for services performed by employees of the employer. For purposes of this subsection, the term applicable employer means, with respect to any calendar year, any employer which is an applicable employer described in section 101(c)(1)(A) of the Secure, Accessible, Valuable, Efficient Universal Pension Accounts Act . All persons treated as a single employer under subsection
(a)or
(b)of section 52, or subsection
(m)or
(o)of section 414, of the Internal Revenue Code of 1986 shall be treated as a single employer for purposes of this paragraph. The Secretary may waive the application of paragraph
(1)with respect to a taxpayer on a showing by the taxpayer that there was reasonable cause for the failure and that the taxpayer acted in good faith. . The amendments made by this section shall apply to taxable years beginning after December 31, 2015.