This was reported on deadline.com 12/12/14:
Nearly six years after Punching The Clown won Best Narrative Feature at the Slamdance Film Festival, a sequel is in the works. Henry Phillips returns to star in Still Punching The Clown, which he again co-wrote with director Gregori Viens. David Permut, Matt Ratner and Rick Rosenthal are producing the pic, which also stars J.K. JK Simmons Sarah Silverman, Mike Judge, Jim Jefferies, Derek Waters, Ellen Ratner, Ginger Gonzaga and stand-up comedians Tig Notaro, Nikki Glaser and Doug Stanhope.
In 2012 it was reported that Sarah was developing a TV series for Showtime based on Punching the Clown, but that never went forward. Our chances of seeing a feature sequel looks more promising: On November 25, Phillips himself tweeted, “Punching the Clown 2 is now in the can. Look out for it next year!”
IMDB summarizes the plot of the 2009 original this way: This uproarious and smart new comedy tells the story of Henry Phillips, a hapless modern day troubadour who grinds his way through the heartland, living out of his car and singing his twisted satirical songs to anyone who will listen. After a booking mishap involving a Christian fundraiser, he decides he’s hit rock bottom. Seeking to shake things up, he moves to L.A. where his luck changes overnight. Thanks less to his inept manager than to a wild case of mistaken identity, he falls backwards into a string of packed gigs, a record deal and even the promise of love. But he who lives by the whimsy of show business dies by it, and reality hits him like a fist in the face: an innocent miscommunication over a bagel brands him a neo-Nazi in the world of tabloid journalism. Luckily, somewhere between rock bottom and nowhere lies the perfect terrain for his dark and hilarious songs.