A WIN for Banks – The IRS Backs Down on OREO Carrying Costs

Financial Institutions

December 29, 2015
by Lindsey Sabelko, CPA

Bookmark and Share
Lindsey Sabelko Lindsey Sabelko, CPA
Manager

View Profile
 
 
The change in IRS position is a huge WIN for banks, but what does this mean for your bank?
 
Banks that have not been capitalizing OREO carrying costs and are not (or have not been) under IRS audit can continue to deduct these expenses in the year they are incurred.  This should no longer be an issue if the bank comes under IRS audit in the future.
 
For those banks that were either under IRS audit, changed accounting methods, and/or potentially paid tax related to this change, the IRS issued guidance through Revenue Procedure 
2014-16 in January 2014. 

Average Rating:

Length: 1 pages (PDF 33 kB)



Rate this Article
*  =  required fields
Your Rating*
Name*
E-mail Address*
Company