February 24, 2025
Mrs. Blackburn (for herself and Ms. Cortez Masto) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to extend the period of time for making S corporation elections, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Tax Administration Simplification Act
.
Sec. 2. Extension of time for making S corporation elections
(a) In general
(1) When election made
Section 1362(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows:
(1) In general
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).
(2) Conforming amendments
(A)
Section 1362(b)(2) of such Code is amended—
(i)
by striking during such year and on or before the 15th day of the 3d month of such year
in subparagraph (A) and inserting within the period described in paragraph (1)
, and
(ii)
by striking made during the first 2 ½ months
in the heading thereof.
(B)
Section 1362(b) of such Code is amended by striking paragraphs (3) and (4) and by redesignating paragraph (5) as paragraph (3).
(C)
Section 1362(b)(3) of such Code, as redesignated by subparagraph (B), is amended—
(i)
by striking (determined without regard to paragraph (3))
in subparagraph (A), and
(ii)
by striking (and paragraph (3) shall not apply)
.
(D)
Section 1362(b) of such Code, as amended by the preceding provisions of this subsection, is amended by adding at the end the following new paragraphs:
(4) Election on timely filed returns
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.
(5) Secretarial authority
The Secretary may prescribe such regulations, rules, or other guidance necessary to implement this subsection, including forms or other guidance for making the election in the manner described by this subsection.
(b) Coordination with certain other provisions
(1) Qualified subchapter S subsidiaries
Section 1361(b)(3)(B) of the Internal Revenue Code of 1986 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).
(2) Qualified subchapter S trusts
Section 1361(d)(2) of such Code is amended by striking subparagraph (D).
(c) Revocations
Section 1362(d)(1) of the Internal Revenue Code of 1986 is amended—
(1)
by striking subparagraph (D)
in subparagraph (C) and inserting subparagraphs (D) and (E)
, and
(2)
by adding at the end the following new subparagraph:
(E) Authority to treat late revocations as timely
If—
(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
(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.
(d) Effective date
(1) In general
Except as otherwise provided in this subsection, the amendments made by this section shall apply to elections for taxable years beginning after the last day of the calendar year which includes the date of the enactment of this Act.
(2) Revocations
The amendments made by subsection (c) shall apply to revocations made after the date of the enactment of this Act.
Sec. 3. Quarterly installments for estimated income tax payments by individuals
(a) In general
The table contained in section 6654(c)(2) of the Internal Revenue Code of 1986 is amended—
(1)
by striking June 15
and inserting July 15
, and
(2)
by striking September 15
and inserting October 15
.
(b) Effective date
The amendments made by this section shall apply to installments due in taxable years beginning after the date of the enactment of this Act.
Sec. 4. Extension of mailbox rule to electronic submissions and payments
(a) In general
Section 7502(c) of the Internal Revenue Code of 1986 is amended—
(1)
in the heading, by inserting and payment
after filing
,
(2)
in paragraph (2)—
(A)
in the heading, by striking ; electronic filing
, and
(B)
by striking and electronic filing
, and
(3)
by adding at the end the following:
(3) Electronic filing and payment
(A) In general
In the case of any document which the Secretary has permitted to be filed by electronic means (or, in the case of any payment, which the Secretary has permitted to be made by electronic means), if such document or payment is—
(i)
transmitted by the permitted electronic means to the agency, officer, or office to which the document was required to be filed (or payment was required to be made) on or before the prescribed date (or within the period required) with respect to such document or payment, and
(ii)
received (or, in the case of a payment, received and accounted for) after the prescribed date or period required with respect to such document or payment,
the date that such document or payment was transmitted (as described in clause (i)) shall be deemed to be the date that such document was filed or such payment was made.
(B) Regulations
Not later than the date which is 1 year after the date of enactment of the Tax Administration Simplification Act, the Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this paragraph.
(b) Effective date
The amendments made by subsection (a) shall apply to any document or payment sent on or after the date which is 1 year after the date of enactment of this Act.