The Treasury Department issued its highly anticipated proposed rule to 
implement the Tax Cuts and Jobs Act's 20 percent tax deduction for pass-through businesses.
While the proposal heeds congressional intent by allowing Subchapter S community banks to qualify for the deduction, restrictions on certain types of financial services raise questions about how it will be applied.
Citing Section 199A of the tax law, Treasury's proposed rule cites various financial services that do not qualify for the 20 percent deduction, such as wealth management and retirement planning.
Businesses that have $25 million or less in gross receipts and earn less than 10 percent of those receipts from these services would not be excluded from the deduction, nor would businesses with more than $25 million in gross receipts that earn less than 5 percent from those services.
While income derived from insurance brokerage would be fully eligible for the deduction, ICBA is particularly concerned about whether income from loans sold to be securitized will be eligible.
In communications with administration officials, including a recent meeting with staff from the White House and Office of Management and Budget, ICBA has advocated a broad interpretation that would ensure all Sub S community bank activities are eligible. This would bolster lending while ensuring the tax code does not incentivize pass-through businesses to restructure to C corporations-both priorities of tax reformers.
Comments on the proposal are due 45 days after it is published in the Federal Register. ICBA is reviewing the plan and will submit comments.
bill, a broad coalition of financial, agricultural and other trade associations in a 
Development to amend its fair lending disparate-impact rule to meet the limitations imposed by the U.S. Supreme Court. Community bankers can use 
further empower companies that provide telephone service to block fraudulent and other illegal calls. The FCC's request comes after it authorized - but did not require - voice service providers last November to block calls from phone numbers that are invalid or unassigned to a specific user. In its ongoing effort to combat illegal calls, the FCC is seeking comment on additional criteria by which voice service providers may block calls that are "highly likely to be illegal."
Verification Tool for HMDA data collected in 2018 and submitted in 2019. The tool tests whether HMDA files meet certain formatting requirements specified in the HMDA Filing Instructions Guide. It has no login functions and does not log identifying information about users or files.
