Federal Income Taxation Of Banks And Financial Institutions

The Multistate Tax Guide to Financial Institutions (the Guide) was developed to provide a quick reference to assist tax professionals in finding answers to various financial institution-specific income and franchise tax questions for all 50 states and the District of Columbia. The Guide is meant to be just that, a guide. It is not meant as a substitute for original research; it is not meant to be authoritative; nor is it intended to provide tax advice; and it cannot be relied on as a basis to avoid the imposition of penalties.

Studies certain rules that affect decisions by banks to elect S-corp. status for Fed. tax purposes. Banks were permitted to elect S-corp. status for the first time beginning in 1997. Banking industry rep's. have cited a number of obstacles that banks face when converting to S-Corp. status. Possible revisions to the tax rules were proposed to address these obstacles and would generally expand the banking &, in some cases, other industries' eligibility to elect S-corp. status. The objectives of this report were to (1) analyze possible revisions to the rules governing S-corp.; and (2) determine the potential impact such revisions might have, primarily on community banks. Tables.