|
IBAT Joins Fight to Protect Subchapter S Banks
Your IBAT Board has elected to enter a fight to protect Subchapter S banks. At their recent meeting held on June 2 in Dallas, the IBAT Board voted to help fund a lawsuit brought by the Community Bankers Association of Wisconsin against the IRS. The IRS is seeking to make permanent the TEFRA interest disallowance after three years. The Wisconsin ruling will affect every Sub S bank if allowed to stand.
The IRS position appears to be contrary to the express provisions of the Internal Revenue Code, and inconsistent with the IRS position in past years. The IBAT Board authorized a check to help fund the legal challenge in the amount of $10,000. Currently IBAT has 241 Subchapter S members that would be adversely affected if the IRS were to prevail.
| 
