Main Street Revival Act of 2017
This bill amends the Internal Revenue Code to allow a specified small business to pay its first-year employment taxes in four equal installments. The bill defines "specified small business" as any HUBZone business (a business operating in a historically underutilized business zone as defined by the Small Business Act) that is not reasonably expected to employ more than 25 full-time employees in its first year of operation.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2265 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 2265
To amend the Internal Revenue Code of 1986 to allow small businesses to
defer the payment of certain employment taxes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 1, 2017
Mr. Collins of New York (for himself and Mr. Swalwell of California)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow small businesses to
defer the payment of certain employment taxes.
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 ``Main Street Revival Act of 2017''.
SEC. 2. DEFERRAL OF CERTAIN EMPLOYMENT TAXES BY SMALL BUSINESSES.
(a) In General.--Section 3111 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(f) Election by Small Businesses To Defer Payment.--
``(1) In general.--A specified small business may elect to
pay the specified first-year employment taxes of such business
in installments as provided in paragraph (2).
``(2) Payment in installments.--
``(A) In general.--If an election is made under
paragraph (1), the specified first-year employment
taxes shall be paid in 4 equal installments. The first
installment shall be paid on the date which is one year
after the end of the specified first year and each
succeeding installment shall be paid on the date which
is one year after the due date of the previous
installment.
``(B) Acceleration of payment under certain
circumstances.--If there is an addition to tax for
failure to pay timely assessed with respect to any
installment required under this subsection, a
liquidation or sale of substantially all the assets of
the taxpayer (including in a title 11 or similar case),
a cessation of business by the taxpayer, or any similar
circumstance, then the unpaid portion of all remaining
installments shall be due on the date of such event (or
in the case of a title 11 or similar case, the day
before the petition is filed).
``(C) Proration of any deficiency to
installments.--If an election is made under paragraph
(1) to pay the specified first-year employment taxes in
installments and a deficiency has been assessed, the
deficiency shall be prorated to such installments. The
part of the deficiency so prorated to any installment
the date for payment of which has not arrived shall be
collected at the same time as, and as a part of, such
installment. The part of the deficiency so prorated to
any installment the date for payment of which has
arrived shall be paid upon notice and demand from the
Secretary. This subsection shall not apply if the
deficiency is due to negligence, to intentional
disregard of rules and regulations, or to fraud with
intent to evade tax.
``(3) Specified small business.--For purposes of this
section--
``(A) In general.--The term `specified small
business' means any HUBZone business if there is a
reasonable expectation as of the first day of the
specified first-year that such business will not employ
more than 25 full-time employees (determined under
section 45R(d) by treating the specified first year as
the taxable year) for such year. Such term shall not
include any business unless the specified first-year of
such business begins after the date of the enactment of
this subsection.
``(B) Hubzone business.--The term `HUBZone
business' means any employer if--
``(i) every trade or business of such
employer is actively conducted within a
HUBZone, and
``(ii) a substantial portion of the
services performed for such employer by its
employees are performed in a HUBZone.
``(C) Hubzone.--The term `HUBZone' means any area
which would be a historically underutilized business
zone (as defined in section 3(p)(1) of the Small
Business Act) if such section were applied without
regard to subparagraphs (C), (D), and (E) thereof.
``(4) Specified first-year employment taxes.--For purposes
of this section--
``(A) In general.--The term `specified first-year
employment taxes' means, with respect to any specified
small business, the taxes imposed under subsections (a)
and (b) with respect to wages paid during the specified
first-year of such business.
``(B) Specified first-year.--The term `specified
first-year' means, with respect to any specified small
business, the 1-year period beginning on the first date
that any employee of such business performs any service
for such business.
``(5) Aggregation rules, etc.--All persons treated as a
single employer under subsection (a) or (b) of section 52 or
subsection (m) or (o) of section 414 shall be treated as one
person for purposes of this subsection. Any reference in this
subsection to any person shall include a reference to any
predecessor of such person.
``(6) Trust funds held harmless.--Appropriations, deposits,
and transfers to the Federal Old-Age and Survivors Trust Fund
and the Federal Disability Insurance Trust Fund established
under section 201 of the Social Security Act (42 U.S.C. 401)
shall be made in such amount, at such time, and in such manner
as such appropriations, deposits, and transfers would be made
if this subsection had never been enacted.''.
(b) Effective Date.--The amendment made by this section shall apply
to any specified small business (as defined in section 3111(f) of the
Internal Revenue Code of 1986, as added by this section) the specified
first-year of which (within the meaning of such section 3111) begins
after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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