# 26 U.S.C. § 581: Definition of bank

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s581>. Cite pinpoints as 26 U.S.C. § 581(a)(1).

For purposes of sections 582 and 584, the term “bank” means a bank or trust company incorporated and doing business under the laws of the United States (including laws relating to the District of Columbia) or of any State, a substantial part of the business of which consists of receiving deposits and making loans and discounts, or of exercising fiduciary powers similar to those permitted to national banks under authority of the Comptroller of the Currency, and which is subject by law to supervision and examination by State or Federal authority having supervision over banking institutions. Such term also means a domestic building and loan association.

## Regulations

- [Treas. Reg. § 1.581-1](/26/reg/1.581-1.md): Banks. (interprets § 581)
- [Treas. Reg. § 1.581-2](/26/reg/1.581-2.md): Mutual savings banks, building and loan associations, and cooperative banks. (interprets § 581)
- [Treas. Reg. § 1.581-3](/26/reg/1.581-3.md): Definition of bank prior to September 28, 1962. (interprets § 581)

## Final rules

- [61 FR 66584](https://www.federalregister.gov/documents/1996/12/18/96-31997/simplification-of-entity-classification-rules) (1996): Simplification of Entity Classification Rules

## Leading cases

- [The Limited, Inc. v. Commissioner, 286 F.3d 324 (6th Cir. 2002)](https://www.courtlistener.com/opinion/777223/the-limited-inc-and-consolidated-subsidiaries-v-commissioner-of/)
- [Aston v. Commissioner, 109 T.C. 400 (1997)](https://www.courtlistener.com/opinion/4695379/aston-v-commr/)
- [Austin State Bank v. Commissioner, 57 T.C. 180 (1971)](https://www.courtlistener.com/opinion/4703220/austin-state-bank-v-commissioner/)

## Connections

Cites: none

Cited by: § 59A Tax on base erosion payments of taxpayers with substantial gross receipts; § 165 Losses; § 246A Dividends received deduction reduced where portfolio stock is debt financed; § 271 Debts owed by political parties, etc.; § 279 Interest on indebtedness incurred by corporation to acquire stock or assets of another corporation; § 355 Distribution of stock and securities of a controlled corporation; § 368 Definitions relating to corporate reorganizations; § 408 Individual retirement accounts; § 409 Qualifications for tax credit employee stock ownership plans; § 465 Deductions limited to amount at risk; § 501 Exemption from tax on corporations, certain trusts, etc.; § 512 Unrelated business taxable income; § 514 Unrelated debt-financed income; § 542 Definition of personal holding company; § 585 Reserves for losses on loans of banks; § 593 Reserves for losses on loans; § 864 Definitions and special rules; § 992 Requirements of a domestic international sales corporation; § 1042 Sales of stock to employee stock ownership plans or certain cooperatives; § 1281 Current inclusion in income of discount on certain short-term obligations; § 1361 S corporation defined; § 1362 Election; revocation; termination; § 1473 Definitions; § 4975 Tax on prohibited transactions; § 6032 Returns of banks with respect to common trust funds; § 6050P Returns relating to the cancellation of indebtedness by certain entities; § 6323 Validity and priority against certain persons; § 6695 Other assessable penalties with respect to the preparation of tax returns for other persons; § 7512 Separate accounting for certain collected taxes, etc.; § 7603 Service of summons

Derived from: 1939 § 104(a)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 202
- 1962-09-28: [Pub. L. 87-722](/26/act/87-722.md), 76 Stat. 670
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1803