Bill Details
HR.1075 - 119th Congress
Status
Latest action
2025-02-06 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-02-06
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
7
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would make several tax filing rules easier and more flexible for taxpayers and the IRS. It says that when people send tax forms or payments electronically, the date they send them should count as the filing or payment date, even if the IRS opens or reviews them later. It also gives small businesses more time and flexibility to choose S corporation tax status or cancel that choice if they miss a deadline for a good reason. In addition, it shifts two quarterly estimated tax payment deadlines for individuals to later in the year.
Electronic tax filings and payments would be treated as submitted on the day they are sent, as long as they are sent through the proper IRS system. The IRS would also have to issue guidance for how this rule works.
Small businesses that want to be treated as S corporations could make that choice up to the due date of the return, including extensions. If they miss the deadline but had a reasonable excuse, the IRS could still treat the election as timely. Similar flexibility would also apply to some related S corporation rules and to late revocations.
The bill would move two estimated income tax payment deadlines for individuals: the June 15 payment would become due July 15, and the September 15 payment would become due October 15.
Most of the changes would apply starting with tax years after December 31, 2025. The rule for electronic filing and payment would apply to items sent after that date, and the revocation change would take effect right after the bill becomes law.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1075 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1075
To amend the Internal Revenue Code of 1986 to make improvements related
to tax administration.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2025
Mr. LaHood (for himself, Ms. DelBene, Mr. Feenstra, Mr. Schneider, Mr.
Fitzpatrick, and Mr. Panetta) 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 make improvements related
to tax administration.
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. APPLICATION OF MAILBOX RULE TO DOCUMENTS AND PAYMENTS
ELECTRONICALLY SUBMITTED TO THE INTERNAL REVENUE SERVICE.
(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.--If any return, claim, statement,
or other document required to be filed, or any payment
required to be made, within a prescribed period or on
or before a prescribed date under authority of any
provision of the internal revenue laws is sent
electronically by any person to the agency, officer, or
office with which such return, claim, statement, or
other document is required to be filed, or to which
such payment is required to be made, the date on which
such return, claim, statement, or other document, or
payment, is sent electronically by such person shall be
deemed to be the date of delivery or the date of
payment, as the case may be, regardless of the date on
which the applicable agency, officer, or office
receives or reviews such return, claim, statement,
document, or payment.
``(B) Regulations.--Not later than December 31,
2025, 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 this section shall
apply to any document or payment sent after December 31, 2025.
SEC. 3. EXTENSION OF TIME FOR MAKING S CORPORATION ELECTIONS.
(a) In General.--Section 1362(b) of the Internal Revenue Code of
1986 is amended to read as follows:
``(b) When Made.--
``(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) Certain elections treated as made for next taxable
year.--If--
``(A) an election under subsection (a) is made for
any taxable year within the period described in
paragraph (1), but
``(B) either--
``(i) 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
``(ii) 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.
``(3) Authority to treat late elections, etc., as timely.--
If--
``(A) 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
``(B) 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.
``(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 as may be necessary
or appropriate for purposes of applying this subsection.''.
(b) Coordination With Certain Other Provisions.--
(1) Qualified subchapter s subsidiaries.--Section
1361(b)(3)(B) of such Code 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 such Code 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 December 31, 2025.
(2) Revocations.--The amendments made by subsection (c)
shall apply to revocations made after the date of the enactment
of this Act.
SEC. 4. QUARTERLY INSTALLMENTS FOR ESTIMATED INCOME TAX PAYMENTS BY
INDIVIDUAL.
(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 December 31,
2025.
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