HR1075-119

1. Short title This Act may be cited as the Tax Administration Simplification Act.

2. Application of mailbox rule to documents and payments electronically submitted to the Internal Revenue Service Section 7502(c) of the Internal Revenue Code of 1986 is amended— in the heading, by inserting and payment after filing, in paragraph (2)— in the heading, by striking ; electronic filing, and by striking and electronic filing, and by adding at the end the following: If any return, claim, statement, or other document required to be filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under authority of any provision of the internal revenue laws is sent electronically by any person to the agency, officer, or office with which such return, claim, statement, or other document is required to be filed, or to which such payment is required to be made, the date on which such return, claim, statement, or other document, or payment, is sent electronically by such person shall be deemed to be the date of delivery or the date of payment, as the case may be, regardless of the date on which the applicable agency, officer, or office receives or reviews such return, claim, statement, document, or payment. Not later than December 31, 2025, the Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this paragraph. The amendments made by this section shall apply to any document or payment sent after December 31, 2025. (3)Electronic filing and payment(A)In generalIf any return, claim, statement, or other document required to be filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under authority of any provision of the internal revenue laws is sent electronically by any person to the agency, officer, or office with which such return, claim, statement, or other document is required to be filed, or to which such payment is required to be made, the date on which such return, claim, statement, or other document, or payment, is sent electronically by such person shall be deemed to be the date of delivery or the date of payment, as the case may be, regardless of the date on which the applicable agency, officer, or office receives or reviews such return, claim, statement, document, or payment.(B)RegulationsNot later than December 31, 2025, the Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this paragraph..

3. Extension of time for making S corporation elections Section 1362(b) of the Internal Revenue Code of 1986 is amended to read as follows: An election under subsection (a) may be made by a small business corporation for any taxable year not later than the due date for filing the return of the S corporation for such taxable year (including extensions). If— an election under subsection (a) is made for any taxable year within the period described in paragraph (1), but either— on 1 or more days in such taxable year and before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section 1361, or 1 or more of the persons who held stock in the corporation during such taxable year and before the election was made did not consent to the election, If— an election under subsection (a) is made for any taxable year after the date prescribed by this subsection for making such election for such taxable year or no such election is made for any taxable year, and the Secretary determines that there was reasonable cause for the failure to timely make such election, Except as otherwise provided by the Secretary, an election under subsection (a) for any taxable year may be made on a timely filed return of the S corporation for such taxable year. The Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection. Section 1361(b)(3)(B) of such Code is amended by adding at the end the following flush sentence: Section 1361(d)(2) of such Code is amended by striking subparagraph (D). Section 1362(d)(1) of such Code is amended— by striking subparagraph (D) in subparagraph (C) and inserting subparagraphs (D) and (E), and by adding at the end the following new subparagraph: If— a revocation under subparagraph (A) is made for any taxable year after the date prescribed by this paragraph for making such revocation for such taxable year or no such revocation is made for any taxable year, and the Secretary determines that there was reasonable cause for the failure to timely make such revocation, Except as otherwise provided in this subsection, the amendments made by this section shall apply to elections for taxable years beginning after December 31, 2025. The amendments made by subsection (c) shall apply to revocations made after the date of the enactment of this Act. (b)When made(1)In generalAn election under subsection (a) may be made by a small business corporation for any taxable year not later than the due date for filing the return of the S corporation for such taxable year (including extensions).(2)Certain elections treated as made for next taxable yearIf—(A)an election under subsection (a) is made for any taxable year within the period described in paragraph (1), but(B)either—(i)on 1 or more days in such taxable year and before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section 1361, or(ii)1 or more of the persons who held stock in the corporation during such taxable year and before the election was made did not consent to the election,then such election shall be treated as made for the following taxable year.(3)Authority to treat late elections, etc., as timelyIf—(A)an election under subsection (a) is made for any taxable year after the date prescribed by this subsection for making such election for such taxable year or no such election is made for any taxable year, and(B)the Secretary determines that there was reasonable cause for the failure to timely make such election,the Secretary may treat such an election as timely made for such taxable year.(4)Election on timely filed returnsExcept as otherwise provided by the Secretary, an election under subsection (a) for any taxable year may be made on a timely filed return of the S corporation for such taxable year.(5)Secretarial authorityThe Secretary may prescribe such regulations, rules, or other guidance as may be necessary or appropriate for purposes of applying this subsection.. Rules similar to the rules of section 1362(b) shall apply with respect to any election under clause (ii).. (E)Authority to treat late revocations as timelyIf—(i)a revocation under subparagraph (A) is made for any taxable year after the date prescribed by this paragraph for making such revocation for such taxable year or no such revocation is made for any taxable year, and(ii)the Secretary determines that there was reasonable cause for the failure to timely make such revocation,the Secretary may treat such a revocation as timely made for such taxable year..

4. Quarterly installments for estimated income tax payments by individual The table contained in section 6654(c)(2) of the Internal Revenue Code of 1986 is amended— by striking June 15 and inserting July 15, and by striking September 15 and inserting October 15. The amendments made by this section shall apply to installments due in taxable years beginning after December 31, 2025.