You will be given a definition of a task first, then some input of the task.
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

This Act may be cited as the ''Taking Care of Small Business Tax
Simplification Act of 2005''.

SEC. 2. SUBCHAPTER S ELECTION PERMITTED ON RETURN FILED BEFORE DUE DATE
WITH EXTENSIONS.

(a) In General.--Subsection (b) of section 1362 of the Internal
Revenue Code of 1986 (relating to when subchapter S election made) is
amended to read as follows:
''(b) When Made.--
''(1) In general.--An election under subsection (a) may be
made by a small business corporation for any taxable year at
any time during the period--
''(A) beginning on the first day of the preceding
taxable year, and
''(B) ending on the due date (with extensions) for
filing the return for the taxable year.
''(2) Certain elections treated as made for next taxable
year.--If--
''(A) an election under subsection (a) is made for
any taxable year within the period described in
paragraph (1), but
''(B) either--
''(i) on 1 or more days in such taxable
year before the day on which the election was
made the corporation did not meet the
requirements of subsection (b) of section 1361,
or
''(ii) 1 or more of the persons who held
stock in the corporation during such taxable
year and before the election was made did not
consent to the election,
then such election shall be treated as made for the
following taxable year.
''(3) Election made after due date treated as made for
following taxable year.--If--
''(A) a small business corporation makes an
election under subsection (a) for any taxable year, and
''(B) such election is made after the due date
(with extensions) for filling the return for such year,
hen such election shall be treated as made for the following
taxable year.
''(4) Authority to treat late elections, etc., as timely.--
If--
''(A) an election under subsection (a) is made for
any taxable year (determined without regard to
paragraph (3)) after the date prescribed by this
subsection for making such election for such taxable
year or no such election is made for any taxable year,
and
''(B) the Secretary determines that there was
reasonable cause for the failure to timely make such
election,
the Secretary may treat such an election as timely made for
such taxable year (and paragraph (3) shall not apply)''.
(b) Revocations.--Subparagraph (C) of section 1362(d)(1) of such
Code is amended to read as follows:
''(C) When effective.--Except as provided in
subparagraph (D)--
''(i) a revocation made on or before the
due date (with extensions) for filing the
return for a taxable year shall be effective on
the 1st day of such taxable year unless the
revocation specifies that it is to take effect
on the 1st day of the taxable year in which
made, and
''(ii) a revocation made during a taxable
year but after the due date (with extensions)
for filing the return for the preceding taxable
year shall be effective on the 1st day of the
taxable year.''.
(c) Effective Date.--The amendments made by this section shall
apply to elections for taxable years beginning after the date of the
enactment of this Act.

SEC. 3. RELIEF FROM PENALTIES FOR DEPOSITS OF TAXES MADE ON A TIMELY
BASIS BUT NOT IN THE PRESCRIBED MANNER.

(a) In General.--Section 6656 of the Internal Revenue Code of 1986
(relating to failure to make deposits of taxes) is amended by
redesignating subsection (e) as subsection (f) and by inserting after
subsection (d) the following new subsection:
''(e) Relief From Penalties for Deposits of Taxes Made on a Timely
Basis but not in the Prescribed Manner.--The Secretary may abate all or
any portion of the penalty imposed by subsection (a) on the failure to
make a deposit in the manner prescribed by the Secretary if--
''(1) the deposit was made not later than the date
prescribed therefor, and
''(2) such failure was due to reasonable cause and not
willful neglect.
The applicable percentage under subsection (b) shall not exceed 2
percent in the case of any failure with respect to which the
requirements of paragraphs (1) and (2) are met.''.
(b) Conforming Amendment.--Subparagraph (A) of section 6656(b)(1)
of such Code is amended by striking ''subparagraph (B)'' and inserting
''subparagraph (B) and subsection (e)''.
(c) Effective Date.--The amendments made by this section shall
apply to deposits required to be made after the date of the enactment
of this Act.

SEC. 4. UNINCORPORATED BUSINESSES OPERATED BY HUSBAND AND WIFE AS CO-
OWNERS.

(a) In General.--Section 761 of the Internal Revenue Code of 1986
(defining terms for purposes of partnerships) is amended by
redesignating subsection (f) as subsection (g) and by inserting after
subsection (e) the following new subsection:
''(f) Qualified Joint Venture.--
''(1) In general.--In the case of a qualified joint venture
conducted by a husband and wife who file a joint return for the
taxable year, for purposes of this title--
''(A) such joint venture shall not be treated as a
partnership,
''(B) all items of income, gain, loss, deduction,
and credit shall be divided between the spouses in
accordance with their respective interests in the
venture, and
''(C) each spouse shall take into account such
spouse's respective share of such items as if they were
attributable to a trade or business conducted by such
spouse as a sole proprietor.
''(2) Qualified joint venture.--For purposes of paragraph
(1), the term 'qualified joint venture' means any joint venture
involving the conduct of a trade or business if--
''(A) the only members of such joint venture are a
husband and wife,
''(B) both spouses materially participate (within
the meaning of section 469(h) without regard to
paragraph (5) thereof) in such trade or business, and
''(C) both spouses elect the application of this
subsection.''.
(b) Net Earnings From Self-Employment.--
(1) Subsection (a) of section 1402 of such Code (defining
net earnings from self-employment) is amended by striking
''and'' at the end of paragraph (15), by striking the period at
the end of paragraph (16) and inserting ''; and'', and by
inserting after paragraph (16) the following new paragraph:
''(17) notwithstanding the preceding provisions of this
subsection, each spouse's share of income or loss from a
qualified joint venture shall be taken into account as provided
in section 761(f) in determining net earnings from self-
employment of such spouse.''.
(2) Subsection (a) of section 211 of the Social Security
Act (defining net earnings from self-employment) is amended by
striking ''and'' at the end of paragraph (15), by striking the
period at the end of paragraph (16) and inserting ''; and'',
and by inserting after paragraph (16) the following new
paragraph:
''(17) Notwithstanding the preceding provisions of this
subsection, each spouse's share of income or loss from a
qualified joint venture shall be taken into account as provided
in section 761(f) of the Internal Revenue Code of 1986 in
determining net earnings from self-employment of such
spouse.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act .
Output:
Taking Care of Small Business Tax Simplification Act of 2005 - Amends the Internal Revenue Code to: (1) extend the deadline for filing a subchapter S election; (2) authorize the Secretary of the Treasury to abate penalties for payroll taxes timely paid but not deposited in the prescribed manner; and (3) permit married couples who operate certain joint ventures to file separate tax returns.