In 1996 Congress passed legislation granting banks and thrifts the opportunity to elect subchapter S taxation, which quickly resulted in subchapter S conversions by many financial institutions across the country. This trend continues today, as more than two thousand banks and bank holding companies have made subchapter S elections. Not surprisingly, a myriad of issues, questions and concerns have developed surrounding subchapter S taxation for financial institutions. The Subchapter S Bank Association was established to address these very issues.
The Association was created in 1998 to provide financial institutions which have either elected, or are interested in, subchapter S tax status a unified voice through which to promote and protect the benefits available under a subchapter S election. Unlike many other associations, members of the Subchapter S Bank Association share a common interest in their dedication to protecting and enhancing shareholder value through subchapter S treatment. Because of this unique link between its members, the Association is able to represent the interests of its members as a whole without regard to the size, location, charter type or market coverage of the individual members.
The primary objective of the Association is to keep its members well informed. This goal is accomplished by a number of means. First and foremost, the Association publishes the Sub S Bank Report, a quarterly newsletter containing important information about subchapter S issues such as: pending litigation and regulations; IRS rulings, interpretations and actions; and, policies, rulings, interpretations and actions of various other regulatory agencies. Additionally, the Report provides helpful information and recommendations for management, accounting and reporting of subchapter S institutions.
The Association also hosts an annual Conference, featuring speakers from around the country who specialize in a variety of fields impacting subchapter S institutions. The Conference is the premier educational opportunity for banks and bank owners to learn about the latest issues surrounding subchapter S taxation and regulation. Recent Conference topics include: the TEFRA disallowance issue; ESOPs and how S corporation banks can implement and manage them; estate planning structures for S corporation banks; and, merger and acquisition of S corporation banks.
The Subchapter S Bank Association is committed to providing its members with the latest news and developments surrounding subchapter S taxation. For questions or information about subchapter S issues, feel free to contact us.