Main Street Revival Act of 2017

Summary: Main Street Revival Act of 2017  This bill amends the Internal Revenue Code to allow a specified small business to pay its first-year employment taxes in four annual installments. The bill defines "specified small business" as any HUBZone business (a business operating in a historically underutilized business zone as defined by the Small Business Act) that is not reasonably expected to employ more than 25 full-time employees in its first year of operation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Main Street Revival Act of 2017''.

SEC. 2. DEFERRAL OF CERTAIN EMPLOYMENT TAXES BY SMALL BUSINESSES.

    (a) In General.--Section 3111 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Election by Small Businesses To Defer Payment.--
            ``(1) In general.--A specified small business may elect to 
        pay the specified first-year employment taxes of such business 
        in installments as provided in paragraph (2).
            ``(2) Payment in installments.--
                    ``(A) In general.--If an election is made under 
                paragraph (1), the specified first-year employment 
                taxes shall be paid in 4 equal installments. The first 
                installment shall be paid on the date which is one year 
                after the end of the specified first year and each 
                succeeding installment shall be paid on the date which 
                is one year after the due date of the previous 
                installment.
                    ``(B) Acceleration of payment under certain 
                circumstances.--If there is an addition to tax for 
                failure to pay timely assessed with respect to any 
                installment required under this subsection, a 
                liquidation or sale of substantially all the assets of 
                the taxpayer (including in a title 11 or similar case), 
                a cessation of business by the taxpayer, or any similar 
                circumstance, then the unpaid portion of all remaining 
                installments shall be due on the date of such event (or 
                in the case of a title 11 or similar case, the day 
                before the petition is filed).
                    ``(C) Proration of any deficiency to 
                installments.--If an election is made under paragraph 
                (1) to pay the specified first-year employment taxes in 
                installments and a deficiency has been assessed, the 
                deficiency shall be prorated to such installments. The 
                part of the deficiency so prorated to any installment 
                the date for payment of which has not arrived shall be 
                collected at the same time as, and as a part of, such 
                installment. The part of the deficiency so prorated to 
                any installment the date for payment of which has 
                arrived shall be paid upon notice and demand from the 
                Secretary. This subsection shall not apply if the 
                deficiency is due to negligence, to intentional 
                disregard of rules and regulations, or to fraud with 
                intent to evade tax.
            ``(3) Specified small business.--For purposes of this 
        section--
                    ``(A) In general.--The term `specified small 
                business' means any HUBZone business if there is a 
                reasonable expectation as of the first day of the 
                specified first-year that such business will not employ 
                more than 25 full-time employees (determined under 
                section 45R(d) by treating the specified first year as 
                the taxable year) for such year. Such term shall not 
                include any business unless the specified first-year of 
                such business begins after the date of the enactment of 
                this subsection.
                    ``(B) Hubzone business.--The term `HUBZone 
                business' means any employer if--
                            ``(i) every trade or business of such 
                        employer is actively conducted within a 
                        HUBZone, and
                            ``(ii) a substantial portion of the 
                        services performed for such employer by its 
                        employees are performed in a HUBZone.
                    ``(C) Hubzone.--The term `HUBZone' means any area 
                which would be a historically underutilized business 
                zone (as defined in section 3(p)(1) of the Small 
                Business Act) if such section were applied without 
                regard to subparagraphs (C), (D), and (E) thereof.
            ``(4) Specified first-year employment taxes.--For purposes 
        of this section--
                    ``(A) In general.--The term `specified first-year 
                employment taxes' means, with respect to any specified 
                small business, the taxes imposed under subsections (a) 
                and (b) with respect to wages paid during the specified 
                first-year of such business.
                    ``(B) Specified first-year.--The term `specified 
                first-year' means, with respect to any specified small 
                business, the 1-year period beginning on the first date 
                that any employee of such business performs any service 
                for such business.
            ``(5) Aggregation rules, etc.--All persons treated as a 
        single employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as one 
        person for purposes of this subsection. Any reference in this 
        subsection to any person shall include a reference to any 
        predecessor of such person.
            ``(6) Trust funds held harmless.--Appropriations, deposits, 
        and transfers to the Federal Old-Age and Survivors Trust Fund 
        and the Federal Disability Insurance Trust Fund established 
        under section 201 of the Social Security Act (42 U.S.C. 401) 
        shall be made in such amount, at such time, and in such manner 
        as such appropriations, deposits, and transfers would be made 
        if this subsection had never been enacted.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any specified small business (as defined in section 3111(f) of the 
Internal Revenue Code of 1986, as added by this section) the specified 
first-year of which (within the meaning of such section 3111) begins 
after the date of the enactment of this Act.