1. Deferral of tax for certain sales of employer stock to employee stock ownership plan sponsored by S Corporation (a) In general Section 1042(c)(1)(A) of the Internal Revenue Code of 1986 is amended by striking domestic C corporation and inserting domestic corporation . (b) Effective date The amendment made by this section shall apply to sales after the date of the enactment of this Act. 2. Reduction in excise tax on certain accumulations in qualified retirement plans (a) In general Subsection (a) of section 4974 of the Internal Revenue Code of 1986 is amended by striking 50 percent and inserting 25 percent . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2019. 3. Reduction in excise tax on failures to take required minimum distributions (a) In general Section 4974 of the Internal Revenue Code of 1986, as amended by section 2 of this Act, is further amended by adding at the end the following new subsection: (e) Reduction of tax in certain cases (1) Reduction In the case of a taxpayer who— (A) corrects, during the correction window, a shortfall of distributions from an individual retirement plan which resulted in imposition of a tax under subsection (a), and (B) submits a return, during the correction window, reflecting such tax (as modified by this subsection), the first sentence of subsection (a) shall be applied by substituting ‘10 percent’ for ‘25 percent’. (2) Correction window For purposes of this subsection, the term ‘correction window’ means the period of time beginning on the date on which the tax under subsection (a) is imposed with respect to a shortfall of distributions from an individual retirement plan, and ending on the earlier of— (A) the date on which the Secretary initiates an audit, or otherwise demands payment, with respect to the shortfall of distributions, or (B) the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection (a) is imposed. . (b) Effective date The