[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1855 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1855

   To amend the Internal Revenue Code of 1986 to make permanent the 
   reduced recognition period for built-in gains for S corporations.


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                   IN THE SENATE OF THE UNITED STATES

                           December 18, 2013

Mr. Cardin (for himself and Mr. Roberts) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

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                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to make permanent the 
   reduced recognition period for built-in gains for S corporations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS MADE 
              PERMANENT.

    (a) In General.--Paragraph (7) of section 1374(d) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking subparagraphs (A), (B), (C), and (D),
            (2) by redesignating subparagraph (E) as subparagraph (B), 
        and
            (3) by inserting before subparagraph (B) (as so 
        redesignated) the following new subparagraph:
                    ``(A) In general.--The term `recognition period' 
                means the 5-year period beginning with the 1st day of 
                the 1st taxable year for which the corporation was an S 
                corporation. For purposes of applying this section to 
                any amount includible in income by reason of 
                distributions to shareholders pursuant to section 
                593(e), the preceding sentence shall be applied without 
                regard to the phrase `5-year'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2013.
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