The US Senate recently failed to pass a tax extenders bill which would have taxed S-Corporations with 3 or fewer shareholders who provide professional services medicare and social security taxes on the net income of their businesses. Currently S-Corporation shareholders do not pay this tax on the net income of their businesses. This seemed to unjustly focus on just a few S-Corporations who take advantage of the tax benefits there of. This one did not pass, but watch for future attempts.