FED – Agencies invite comment on proposed rule for income tax allocation agreements

The federal bank regulatory agencies today invited comment on a proposed rule that updates & codifies existing guidance on income tax allocation agreements involving depository institutions & their affiliates.

Under the proposed rule, banks that file tax returns as part of a consolidated tax filing group would be required to enter into tax allocation agreements with their holding companies & other members of their consolidated group. The proposed rule also describes the provisions required to be included in those agreements & specifies regulatory reporting treatment.

Comments must be received within 60 days of the proposed rule’s publication in the Federal Register.