Recent tax law changes have created new opportunities and unanticipated pit-falls for banking institutions interested in making an S corporation election. A bank's decision to pursue S corporation status requires a reexamination of existing rules, planning and an evaluation of the benefits and risks associated withthree new tax provisions. These provisions increase the number of S corporation shareholders from 75 to 100, allow family members to elect to be treated as one shareholder, and expand bank S corporation eligible shareholders to include IRAs.
Escaping SOX Reconsider Being a Public Company and Escape Sarbanes-Oxley Angst ABA Banking Journal May 2005
As costs and burdens of federal securities law compliancecontinue to soar, Securities and Exchange Commission-reporting bank holding companies (and banks withoutholding companies that file SEC-compliant reports with FDIC)are increasingly questioning the value of remaining public.