S Corporation Modernization Act of 2011 (H.R. 1478)

Introduced by Ways & Means Committee members Dave Reichert (R-WA) and Ron Kind (D-WI), the S Corporation Modernization Act of 2011 (H.R. 1478) is a critical measure to modernize the outdated rules that apply to S corporations.

Specifically, H.R. 1478 would make needed changes to keep S corporations competitive and help ensure the continued success of Americabs predominant private business model by:

  • Increasing the ability of S corporations to access much-needed capital;
  • Modernizing the rules that apply to firms that have selected S corporation status; and
  • Enabling IRAs to hold stock in S corporations.

These reforms would improve the ability of S corporations to respond to the demands of the current business environment and remove impediments that prevent them from competing on a level playing field here in the United States.

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