I 

114TH CONGRESS 

1ST SESSION H. R. 2409 

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 

MAY 19, 2015 

Mr. SWALWELL of California (for himself, Mr. COLLINS of New York, and Mr. 

SEAN PATRICK MALONEY of New York) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Main Street Revival 

5 Act’’. 

6 SEC. 2. DEFERRAL OF CERTAIN EMPLOYMENT TAXES BY 

7 SMALL BUSINESSES. 

8 (a) IN GENERAL.—Section 3111 of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following new subsection: 


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1 ‘‘(f) ELECTION BY SMALL BUSINESSES TO DEFER

2 PAYMENT.— 

3 ‘‘(1) IN GENERAL.—A specified small business 

4 may elect to pay the specified first-year employment 

5 taxes of such business in installments as provided in 

6 paragraph (2). 

7 ‘‘(2) PAYMENT IN INSTALLMENTS.— 

8 ‘‘(A) IN GENERAL.—If an election is made 

9 under paragraph (1), the specified first-year 

10 employment taxes shall be paid in 4 equal in11 stallments. The first installment shall be paid 

12 on the date which is one year after the end of 

13 the specified first year and each succeeding in14 stallment shall be paid on the date which is one 

15 year after the due date of the previous install16 ment. 

17 ‘‘(B) ACCELERATION OF PAYMENT UNDER

18 CERTAIN CIRCUMSTANCES.—If there is an addi19 tion to tax for failure to pay timely assessed 

20 with respect to any installment required under 

21 this subsection, a liquidation or sale of substan22 tially all the assets of the taxpayer (including in 

23 a title 11 or similar case), a cessation of busi24 ness by the taxpayer, or any similar cir25 cumstance, then the unpaid portion of all reVerDate Sep 11 2014 02:13 May 27, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2409.IH H2409

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1 maining installments shall be due on the date 

2 of such event (or in the case of a title 11 or 

3 similar case, the day before the petition is 

4 filed). 

5 ‘‘(C) PRORATION OF ANY DEFICIENCY TO

6 INSTALLMENTS.—If an election is made under 

7 paragraph (1) to pay the specified first-year 

8 employment taxes in installments and a defi9 ciency has been assessed, the deficiency shall be 

10 prorated to such installments. The part of the 

11 deficiency so prorated to any installment the 

12 date for payment of which has not arrived shall 

13 be collected at the same time as, and as a part 

14 of, such installment. The part of the deficiency 

15 so prorated to any installment the date for pay16 ment of which has arrived shall be paid upon 

17 notice and demand from the Secretary. This 

18 subsection shall not apply if the deficiency is 

19 due to negligence, to intentional disregard of 

20 rules and regulations, or to fraud with intent to 

21 evade tax. 

22 ‘‘(3) SPECIFIED SMALL BUSINESS.—For pur23 poses of this section— 

24 ‘‘(A) IN GENERAL.—The term ‘specified 

25 small business’ means any HUBZone business 


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1 if there is a reasonable expectation as of the 

2 first day of the specified first-year that such 

3 business will not employ more than 25 full-time 

4 employees (determined under section 45R(d) by 

5 treating the specified first year as the taxable 

6 year) for such year. Such term shall not include 

7 any business unless the specified first-year of 

8 such business begins after the date of the en9 actment of this subsection. 

10 ‘‘(B) HUBZONE BUSINESS.—The term 

11 ‘HUBZone business’ means any employer if— 

12 ‘‘(i) every trade or business of such 

13 employer is actively conducted within a 

14 HUBZone, and 

15 ‘‘(ii) a substantial portion of the serv16 ices performed for such employer by its 

17 employees are performed in a HUBZone. 

18 ‘‘(C) HUBZONE.—The term ‘HUBZone’ 

19 means any area which would be a historically 

20 underutilized business zone (as defined in sec21 tion 3(p)(1) of the Small Business Act) if such 

22 section were applied without regard to subpara23 graphs (C), (D), and (E) thereof. 

24 ‘‘(4) SPECIFIED FIRST-YEAR EMPLOYMENT

25 TAXES.—For purposes of this section— 


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1 ‘‘(A) IN GENERAL.—The term ‘specified 

2 first-year employment taxes’ means, with re3 spect to any specified small business, the taxes 

4 imposed under subsections (a) and (b) with re5 spect to wages paid during the specified first6 year of such business. 

7 ‘‘(B) SPECIFIED FIRST-YEAR.—The term 

8 ‘specified first-year’ means, with respect to any 

9 specified small business, the 1-year period be10 ginning on the first date that any employee of 

11 such business performs any service for such 

12 business. 

13 ‘‘(5) AGGREGATION RULES, ETC.—All persons 

14 treated as a single employer under subsection (a) or 

15 (b) of section 52 or subsection (m) or (o) of section 

16 414 shall be treated as one person for purposes of 

17 this subsection. Any reference in this subsection to 

18 any person shall include a reference to any prede19 cessor of such person. 

20 ‘‘(6) TRUST FUNDS HELD HARMLESS.—Appro21 priations, deposits, and transfers to the Federal Old22 Age and Survivors Trust Fund and the Federal Dis23 ability Insurance Trust Fund established under sec24 tion 201 of the Social Security Act (42 U.S.C. 401) 

25 shall be made in such amount, at such time, and in 


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1 such manner as such appropriations, deposits, and 

2 transfers would be made if this subsection had never 

3 been enacted.’’. 

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall apply to any specified small business (as 

6 defined in section 3111(f) of the Internal Revenue Code 

7 of 1986, as added by this section) the specified first-year 

8 of which (within the meaning of such section) begins after 

9 the date of the enactment of this Act. 

Æ 


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