S Corporation Modernization Act of 2007

The S Corporation Modernization Act of 2007 proposes updates to tax laws to provide small businesses organized as S corporations with greater flexibility in managing their finances and attracting investors. The bill would allow individual retirement accounts (IRAs) and non-U.S. residents to become shareholders while making it easier for these companies to earn investment income without facing tax penalties. Additionally, it would shorten the period during which certain business assets are subject to specific taxes and calls for a federal study to compare how different types of small businesses are taxed.