Comments due on proposed tax allocation agreement rule

The Federal Reserve Board, FDIC, and OCC have released a proposed rule that would update and codify existing guidance on income tax allocation agreements involving depository institutions and 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 and other members of their consolidated group.

The proposed rule also describes the provisions required to be included in those agreements and specifies regulatory reporting treatment. Comments will be accepted for 60 days following Federal Register publication.

• Summary of the proposal
• UPDATE on publication and comment period: Scheduled for publication on 5/10/2021, with comments due 7/9/2021