PlainBillCongress, translated.Legislation. Context. Public interest.Read twice and referred to the Committee on Finance. (text: CR S4950-4952)
Congressional Research Service
Version 00 · Introduced in Senate · Jul 18, 2019
S Corporation Modernization Act of 2019
This bill modifies the tax treatment of S corporations (pass thru entities) to
increase from 25% to 60% of S corporation gross receipts the threshold for taxing S corporations with passive investment income;
eliminate a provision terminating the status of S corporations with excessive passive investment income for three consecutive years;
permit S corporations to have individual retirement accounts as shareholders;
allow an adjustment to the basis of an S corporation's assets upon the death of a shareholder, in the form of a 15-year amortization deduction; and
permit the Internal Revenue Service to treat a late revocation of S corporation status as timely if it finds there was reasonable cause for failure to make a timely revocation.
People & committees
Sen. Thune, John [R-SD] · R–SD
Legislative record
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Read twice and referred to the Committee on Finance. (text: CR S4950-4952)
Introduced in Senate
Primary sources
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Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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