Senators John Thune (R-SD) and Ben Cardin (D-MD) today introduced S. 2156, the 2019 version of the S Corporation Modernization Act. The new Modernization Act focuses on leveling the rules between S corporations and other business forms while increasing the opportunity for S corporations to raise capital. Among other items, the bill would:
- Provide meaningful relief from the so-called “Sting Tax” passive income rules;
- Expand the ability of IRAs to invest in S corporation banks; and
- Level the tax-treatment of asset sales with sales of S corporation stock.
As the Senators noted at the introduction:
“While I believe we’ve …