S Corporation Reform Act of 2005 (H.R. 4421)
Introduced by Ways and Means member Clay Shaw (R-FL), the bS Corporation Reform Act of 2005b would make significant improvements to the rules that govern how S corporations are structured and operate.B The bill would:
- Increase access to capital by reducing S corporation ownership restrictions;
- Reduce harmful double taxation by easingB transition rules for C corps that convert to S Corp status;
- Increase S corporation flexibility by allowing multiple classes of stock and convertible debt; and
- Protect S corporations from crippling taxes should they inadvertently violate their S corp. status.
The S Corporation Association has worked with Mr. Shaw and other business groups with S-Corp members to see this vital legislation enacted.