Tax Allocation Agreements: Notice of Proposed Rulemaking
May 17, 2021 / Source: OCC
OCC Bulletin 2021-23| May 17, 2021
To: Chief Executive Officers of National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties
On May 10, 2021, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) published a proposed rule to establish enforceable guidelines implementing requirements for tax allocation agreements and principles for the relationship between national banks, state banks, savings associations, and their holding companies in a consolidated tax filing group.1
Note for Community Banks
This bulletin applies to all community banks that are part of a consolidated tax filing group.
Under the proposed rule, national banks and federal savings associations in a consolidated tax filing group would be required to enter into tax allocation agreements with their holding companies and other members of the consolidated group. The proposed guidelines also describe provisions that would have to be included in these tax allocation agreements, including provisions addressing
- ownership, timing, and amounts of tax refunds received.
- the timing and amounts of any payments for taxes due to taxing authorities.
- the treatment of the sale or transfer of deferred tax assets (DTA).
- access to tax filings and related workpapers.
Please contact Carol Raskin, Senior Policy Accountant, or Mary Katherine Kearney, Professional Accounting Fellow, Office of the Chief Accountant, 202-649-6280, or Kevin Korzeniewski, Counsel, or Joanne Phillips, Counsel, Chief Counsel’s Office, (202) 649-5490.
<>Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel