II 112th CONGRESS 2d Session S. 3223 IN THE SENATE OF THE UNITED STATES May 23, 2012 Mr. Cardin (for himself, Mr. Roberts, and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to permanently extend the reduction in the recognition period for built-in gains for S corporations.

1.

Permanent extension of reduction in recognition period for built-in gains tax

(a)

In general

Subparagraph (A) of section 1374(d)(7) of the Internal Revenue Code of 1986 (relating to recognition period) is amended by striking 10-year period and inserting 5-year period. (b)

Conforming amendments

Paragraph (7) of section 1374(d) of such Code is amended— (1)by striking subparagraph (B), (2)by redesignating subparagraph (C) as subparagraph (B), and (3)in subparagraph (B), as redesignated by paragraph (2), by striking pursuant to section 593(e) and all that follows and inserting pursuant to section 593(e), subparagraph (A) shall be applied without regard to the phrase 5-year.. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.