NEW YORK — The National Business Banking Account is a new program to help small business owners and their employees navigate the complex tax laws.
The program offers a $1,000 annual bank account with a $100 fee and provides the tools to help make tax filing easier for small businesses and their owners.
“This is an opportunity for small business people to take advantage of the program, to take their tax bills out of the bank account and to get back into the tax system,” said Amy Johnson, the director of the National Bank of Commerce, the state affiliate of the American Bankers Association.
This is a program that is really designed to make tax filings easier for individuals and families, she said.
Some states allow employees to open their own bank accounts.
Johnson said that with this program, small business can file tax returns on their own behalf without having to hire a tax preparer.
While the account is open, the account owner must pay a $10 fee per year.
There are a number of different kinds of business accounts available through the National Banks.
For individuals, the National Banking Account offers a number more than one million accounts that can be opened at the National and Federal Banks.
It is also available through banks in Maine, New Hampshire, New York, Pennsylvania and Rhode Island.
As an employer, the American Business Bank Account can be used to open a tax return on behalf of a company, and for personal accounts that are opened for the sole purpose of a tax-free transfer of funds between spouses.
However, Johnson said that if an employee is the owner of the business, there are limits to the amount of tax-deductible funds that can come out of this account.
Once the IRS has determined that an employee’s employer’s account is eligible for the account, the IRS will determine whether the account can be closed.
The National Bank can also open a bank account for individuals for up to $500,000.
The bank can also accept a $50 tax-exempt transfer fee and may charge a $25 fee.
If the employee of the employer has a valid bank account account, it can be open and transferred to the employee.
And it can open up the account for a $20 transfer fee if it is a joint account.