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 …

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