[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5636 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5636

To amend the Internal Revenue Code of 1986 to cut and reduce excess and 
      duplicative tax assessments and paperwork for entrepreneurs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2014

Mr. Peters of California (for himself, Mrs. Napolitano, Mr. Vargas, Mr. 
  Murphy of Florida, and Mr. Delaney) 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 cut and reduce excess and 
      duplicative tax assessments and paperwork for entrepreneurs.

    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 ``Cut REDTAPE Act''.

SEC. 2. EXEMPTION OF NEW SMALL BUSINESSES FROM ESTIMATED INCOME TAX 
              PAYMENTS.

    (a) Individuals.--Section 6654 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (n) as subsection (o) and by 
inserting after subsection (m) the following new subsection:
    ``(n) Special Rule for New Small Businesses.--
            ``(1) In general.--No addition to tax shall be imposed 
        under subsection (a) with respect to income from a new small 
        business.
            ``(2) Income from a new small business.--For purposes of 
        paragraph (1), income from a new small business means, with 
        respect to any individual, income from a trade or business if 
        the gross receipts of such trade or business for the calendar 
        year ending with or within the taxable year of the individual 
        do not exceed $1,000,000.
            ``(3) Limited application.--Paragraph (1) shall not apply 
        to income from a new small business for any taxable year 
        beginning after 2 years after the date on which the new small 
        business is formed.
            ``(4) Controlled groups.--
                    ``(A) In general.--For purposes of this subsection, 
                all persons treated as a single employer under 
                subsection (a) or (b) of section 52 or subsection (m) 
                or (o) of section 414 shall be treated as a single 
                trade or business.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.''.
    (b) Corporations.--Section 6655 of the Internal Revenue Code of 
1986 is amended by redesignating subsection (j) as subsection (k) and 
by inserting after subsection (i) the following new subsection:
    ``(j) Special Rule for New Small Businesses.--
            ``(1) In general.--No addition to tax shall be imposed 
        under subsection (a) with respect to income from a new small 
        business.
            ``(2) Income from a new small business.--For purposes of 
        paragraph (1), income from a new small business means income 
        from a trade or business if the gross receipts of such trade or 
        business for the taxable year do not exceed $1,000,000.
            ``(3) Limited application.--Paragraph (1) shall not apply 
        to income from a new small business for any taxable year 
        beginning after 2 years after the date on which the new small 
        business is incorporated.
            ``(4) Controlled groups.--
                    ``(A) In general.--For purposes of this subsection, 
                all persons treated as a single employer under 
                subsection (a) or (b) of section 52 or subsection (m) 
                or (o) of section 414 shall be treated as a single 
                trade or business.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.
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