H.R.4840 - Federal Government - To amend the Internal Revenue Code of 1986 to provide for S corporation reform, and for other purposes.

To amend the Internal Revenue Code of 1986 to provide for S corporation reform, and for other purposes. 12/19/2007--Introduced. S Corporation Modernization Act of 2007 - Amends the Internal Revenue Code to revise the tax treatment of S corporations, including by: (1) reducing from 10 to 7 years the period during which S corporation built-in gains are subject to tax; (2) allowing nonresident aliens to qualify as beneficiaries of an electing small business trust (ESBT); (3) repealing mandatory termination of S corporation elections for excessive passive investment income; (4) allowing S corporations to increase passive investment income from 25 to 60% without incurring additional tax; (5) allowing individual retirement accounts to be S corporation shareholders; and (6) allowing ESBTs to claim expanded charitable tax deductions.Directs the Comptroller General to study and report to Congress on entity neutrality under the Internal Revenue Code with respect to S corporations,[...]

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