Regulatory Alerts2021-05-10 | 2021-09047Tax Allocation Agreements
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation propose rules requiring depository institutions in consolidated tax filing groups to enter into tax allocation agreements with their holding companies. These agreements must establish mandatory provisions regarding the ownership of tax refunds, the timing of tax payments, and the acknowledgment of agency relationships to preserve institutional safety and soundness. If adopted, the proposal would rescind the 1998 Interagency Policy Statement on Income Tax Allocation and supplement the 2014 Addendum to address observed deficiencies in current practices.
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