Extension of time for making S corporation elections

(a) In general (1) When election made Section 1362(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows: (1) In general An election under subsection (a) may be made by a small business corporation for any taxable year not later than the due date for filing the return of the S corporation for such taxable year (including extensions).. (2) Conforming amendments (A) Section 1362(b)(2) of such Code is amended— (i) by striking during such year and on or before the 15th day of the 3d month of such year in subparagraph (A) and inserting within the period described in paragraph (1), and (ii) by striking made during the first 2 ½ months in the heading thereof. (B) Section 1362(b) of such Code is amended by striking paragraphs (3) and (4) and by redesignating paragraph (5) as paragraph (3). (C) Section 1362(b)(3) of such Code, as redesignated by subparagraph (B), is amended— (i) by striking (determined without regard to paragraph (3)) in subparagraph (A), and (ii) by striking (and paragraph (3) shall not apply). (D) Section 1362(b) of such Code, as amended by the preceding provisions of this subsection, is amended by adding at the end the following new paragraphs: (4) Election on timely filed returns Except as otherwise provided by the Secretary, an election under subsection (a) for any taxable year may be made on a timely filed return of the S corporation for such taxable year. (5) Secretarial authority The Secretary may prescribe such regulations, rules, or other guidance necessary to implement this subsection, including forms or other guidance for making the election in the manner described by this subsection.. (b) Coordination with certain other provisions (1) Qualified subchapter S subsidiaries Section 1361(b)(3)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following flush sentence: Rules similar to the rules of section 1362(b) shall apply with respect to any election under clause (ii).. (2) Qualified subchapter S trusts Section 1361(d)(2) of such Code is amended by striking subparagraph (D). (c) Revocations Section 1362(d)(1) of the Internal Revenue Code of 1986 is amended— (1) by striking subparagraph (D) in subparagraph (C) and inserting subparagraphs (D) and (E), and (2) by adding at the end the following new subparagraph: (E) Authority to treat late revocations as timely If— (i) a revocation under subparagraph (A) is made for any taxable year after the date prescribed by this paragraph for making such revocation for such taxable year or no such revocation is made for any taxable year, and (ii) the Secretary determines that there was reasonable cause for the failure to timely make such revocation, the Secretary may treat such a revocation as timely made for such taxable year.. (d) Effective date (1) In general Except as otherwise provided in this subsection, the amendments made by this section shall apply to elections for taxable years beginning after the last day of the calendar year which includes the date of the enactment of this Act. (2) Revocations The amendments made by subsection (c) shall apply to revocations made after the date of the enactment of this Act.