Main Street Revival Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 7473 To amend the Internal Revenue Code of 1986 to allow small businesses to defer the payment of certain employment taxes. IN THE HOUSE OF REPRESENTATIVES JULY 1, 2020 Mr. SWALWELL of California (for himself and Mr. KATKO) 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 allow small businesses to defer the payment of certain employment taxes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Main Street Revival 4 Act of 2020’’. 5 SEC. 2. DEFERRAL OF CERTAIN EMPLOYMENT TAXES BY 6 SMALL BUSINESSES. 7 (a) IN GENERAL.—Section 3111 of the Internal Rev- 8 enue Code of 1986 is amended by adding at the end the 9 following new subsection: 10 VerDate Sep 11 2014 04:59 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7473.IH H7473 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 7473 IH ‘‘(g) ELECTION BY SMALL BUSINESSES TO DEFER 1 PAYMENT.— 2 ‘‘(1) IN GENERAL.—A specified small business 3 may elect to pay the specified first-year employment 4 taxes of such business in installments as provided in 5 paragraph (2). 6 ‘‘(2) PAYMENT IN INSTALLMENTS.— 7 ‘‘(A) IN GENERAL.—If an election is made 8 under paragraph (1), the specified first-year 9 employment taxes shall be paid in 4 equal in- 10 stallments. The first installment shall be paid 11 on the date which is one year after the end of 12 the specified first year and each succeeding in- 13 stallment shall be paid on the date which is one 14 year after the due date of the previous install- 15 ment. 16 ‘‘(B) ACCELERATION OF PAYMENT UNDER 17 CERTAIN CIRCUMSTANCES.—If there is an addi- 18 tion to tax for failure to pay timely assessed 19 with respect to any installment required under 20 this subsection, a liquidation or sale of substan- 21 tially all the assets of the taxpayer (including in 22 a title 11 or similar case), a cessation of busi- 23 ness by the taxpayer, or any similar cir- 24 cumstance, then the unpaid portion of all re- 25 VerDate Sep 11 2014 04:59 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7473.IH H7473 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 7473 IH maining installments shall be due on the date 1 of such event (or in the case of a title 11 or 2 similar case, the day before the petition is 3 filed). 4 ‘‘(C) PRORATION OF ANY DEFICIENCY TO 5 INSTALLMENTS.—If an election is made under 6 paragraph (1) to pay the specified first-year 7 employment taxes in installments and a defi- 8 ciency has been assessed, the deficiency shall be 9 prorated to such installments. The part of the 10 deficiency so prorated to any installment the 11 date for payment of which has not arrived shall 12 be collected at the same time as, and as a part 13 of, such installment. The part of the deficiency 14 so prorated to any installment the date for pay- 15 ment of which has arrived shall be paid upon 16 notice and demand from the Secretary. This 17 subsection shall not apply if the deficiency is 18 due to negligence, to intentional disregard of 19 rules and regulations, or to fraud with intent to 20 evade tax. 21 ‘‘(3) SPECIFIED SMALL BUSINESS.—For pur- 22 poses of this section— 23 ‘‘(A) IN GENERAL.—The term ‘specified 24 small business’ means any HUBZone business 25 VerDate Sep 11 2014 04:59 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7473.IH H7473 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 7473 IH if there is a reasonable expectation as of the 1 first day of the specified first-year that such 2 business will not employ more than 25 full-time 3 employees (determined under section 45R(d) by 4 treating the specified first year as the taxable 5 year) for such year. Such term shall not include 6 any business unless the specified first-year of 7 such business begins after the date of the en- 8 actment of this subsection. 9 ‘‘(B) HUBZONE BUSINESS.—The term 10 ‘HUBZone business’ means any employer if— 11 ‘‘(i) every trade or business of such 12 employer is actively conducted within a 13 HUBZone, and 14 ‘‘(ii) a substantial portion of the serv- 15 ices performed for such employer by its 16 employees are performed in a HUBZone. 17 ‘‘(C) HUBZONE.—The term ‘HUBZone’ 18 means any area which would be a historically 19 underutilized business zone (as defined in sec- 20 tion 3(p)(1) of the Small Business Act) if such 21 section were applied without regard to subpara- 22 graphs (C), (D), and (E) thereof. 23 ‘‘(4) SPECIFIED FIRST-YEAR EMPLOYMENT 24 TAXES.—For purposes of this section— 25 VerDate Sep 11 2014 04:59 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7473.IH H7473 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 7473 IH ‘‘(A) IN GENERAL.—The term ‘specified 1 first-year employment taxes’ means, with re- 2 spect to any specified small business, the taxes 3 imposed under subsections (a) and (b) with re- 4 spect to wages paid during the specified first- 5 year of such business. 6 ‘‘(B) SPECIFIED FIRST-YEAR.—The term 7 ‘specified first-year’ means, with respect to any 8 specified small business, the 1-year period be- 9 ginning on the first date that any employee of 10 such business performs any service for such 11 business. 12 ‘‘(5) AGGREGATION RULES, ETC.—All persons 13 treated as a single employer under subsection (a) or 14 (b) of section 52 or subsection (m) or (o) of section 15 414 shall be treated as one person for purposes of 16 this subsection. Any reference in this subsection to 17 any person shall include a reference to any prede- 18 cessor of such person. 19 ‘‘(6) TRUST FUNDS HELD HARMLESS.—Appro- 20 priations, deposits, and transfers to the Federal Old- 21 Age and Survivors Trust Fund and the Federal Dis- 22 ability Insurance Trust Fund established under sec- 23 tion 201 of the Social Security Act (42 U.S.C. 401) 24 shall be made in such amount, at such time, and in 25 VerDate Sep 11 2014 04:59 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7473.IH H7473 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 7473 IH such manner as such appropriations, deposits, and 1 transfers would be made if this subsection had never 2 been enacted.’’. 3 (b) EFFECTIVE DATE.—The amendment made by 4 this section shall apply to any specified small business (as 5 defined in section 3111(g) of the Internal Revenue Code 6 of 1986, as added by this section) the specified first-year 7 of which (within the meaning of such section 3111) begins 8 after the date of the enactment of this Act. 9 Æ VerDate Sep 11 2014 04:59 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H7473.IH H7473 pbinns on DSKJLVW7X2PROD with BILLS