ACB Commends Lawmaker for Sub S Hearing

WASHINGTON-Bankers are keeping their political capital going strong in Subchapter S reform. In a June 27 letter, America’s Community Bankers applauded House Ways and Means Subcommittee on Select Revenue Measures Chairman Jim McCrery for holding a hearing on Subchapter S reforms. “That hearing clearly illustrated the limitations of the current rules and identified critical reforms that must be made to make S corporation rules work in today’s world,” the letter, signed by ACB Executive Vice President and Managing Director of Government Relations Robert R. Davis read. “Modifying the S corporation rules would enhance the ability of community banks to fulfill their roles as a source of credit for individuals and small businesses,” he added. The letter, which was copied to each member of the subcommittee, expressed support for the Sub S reform bills that have been introduced, including H.R. 714, H.R. 1498, and H.R. 1896. ACB urged that any Sub S reform bill include an increase in the maximum number of shareholders to at least 150; counting family members as one shareholder; redefining S corporation shares to include IRA accounts; clarify that certain income not count toward the passive income test; and permit Sub S banks to issue preferred stock.