maining 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 defi-
ciency 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 pay-
ment 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 pur-
poses of this section— 
‘‘(A) IN
GENERAL.—The term ‘specified 
small business’ means any HUBZone business 
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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 en-
actment 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 serv-
ices 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 sec-
tion 3(p)(1) of the Small Business Act) if such 
section were applied without regard to subpara-
graphs (C), (D), and (E) thereof. 
‘‘(4) 
SPECIFIED
FIRST-YEAR
EMPLOYMENT 
TAXES.—For purposes of this section— 
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‘‘(A) IN
GENERAL.—The term ‘specified 
first-year employment taxes’ means, with re-
spect to any specified small business, the taxes 
imposed under subsections (a) and (b) with re-
spect 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 be-
ginning 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 prede-
cessor of such person. 
‘‘(6) TRUST FUNDS HELD HARMLESS.—Appro-
priations, deposits, and transfers to the Federal Old- 
Age and Survivors Trust Fund and the Federal Dis-
ability Insurance Trust Fund established under sec-
tion 201 of the Social Security Act (42 U.S.C. 401) 
shall be made in such amount, at such time, and in 
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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(g) 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. 
Æ 
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