[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4831 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4831

To amend the Internal Revenue Code of 1986 to make an exception to the 
 100 shareholder S corporation limitation in the case of shareholders 
   whose shares were acquired through certain crowd-funding or small 
                           public offerings.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 22, 2016

  Mr. Hill (for himself and Mr. Neugebauer) introduced the following 
      bill; which was referred to the Committee on Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to make an exception to the 
 100 shareholder S corporation limitation in the case of shareholders 
   whose shares were acquired through certain crowd-funding or small 
                           public offerings.

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

SECTION 1. EXCEPTION TO S CORPORATION SHAREHOLDER LIMITATION IN CASE OF 
              CROWD-FUNDING AND SMALL PUBLIC OFFERINGS.

    (a) In General.--Section 1361(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(7) Treatment of shares acquired through crowd-funding 
        and small public offerings.--The number of shareholders of the 
        corporation shall be determined under subsection (b)(1)(A) 
        without regard to any individual who has only acquired shares 
        in the corporation through--
                    ``(A) a public offering that meets the terms and 
                conditions set forth in Regulation A promulgated by the 
                Securities and Exchange Commission (17 C.F.R. 230.251 
                et seq.), or
                    ``(B) one or more transactions described in section 
                4(a)(6) of the Securities Act of 1933 (15 U.S.C. 
                77d(a)(6)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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