Small Business and Financial Institutions Tax Relief Act of 1999

[AI summary unavailable — showing source text] Small Business and Financial Institutions Tax Relief Act of 1999 - Amends the Internal Revenue Code with respect to subchapter S corporations (small businesses which do not pay corporate income taxes, and whose earnings are passed through to the shareholders where income taxes are paid) and subchapter C corporations (which do pay corporate income taxes on earnings, and whose shareholders pay income taxes again on those same earnings when they pass through as dividends). (Sec. 2) Permits S corporation eligible shareholders to include individual retirement accounts (IRAs). Exempts from prohibited transaction rules any sale of stock in an IRA pursuant to a small business corporation's election to be an S corporation. (Sec. 3) Excludes from the definition of passive income for purposes of S status termination any interest income earned by or dividends on assets required to be held by a bank, a bank holding company, or a qualified subchapter S subsidiary bank. (Sec. 4) Increases from 75 to 150 the maximum number of shareholders a small business organization may have to be eligible to elect S corporation treatment. (Sec. 5) States that stock held by a bank director as required by banking…