Small Bank Tax Equity Act

Legislation that would permit state chartered banks to operate as LLCs has been introduced in Congress by Senators Orrin Hatch and Blanche Lincoln.  Many state laws, including Iowa's, and FDIC regulations allow banks to operate as LLCs, but IRS regulations require such entities to be taxed as corporations.  The Small Bank Tax Equity Act would change that.

The American Bankers Association and the Independent Community Bankers support the bill.

-Marc Ward