Commercial Banking - Audit Technique Guide (ATG)

National Tax Services, Perspection Inc.

Informations

• Publié par: Fyan
• Nombre de lectures: 11
• Langue: English

Extrait

This page intentionally left blank.TABLE OF CONTENTS
Subject Page
Introduction
Formation of the Group..............................................................................xiii
Utilization of the Commercial Banking Guide .......................................... xiv
Chapter 1, General Overview of the Banking Industry
Definition of a Bank...................................................................................1-1
Industry Regulation ....................................................................................1-3
The Office of the Comptroller of the Currency....................................1-4
The Federal Reserve Bank ...................................................................1-4
The Federal Deposit Insurance Company ............................................1-5
The Office of Thrift Supervision..........................................................1-5
State Regulatory Agencies1-5
Chapter 2, Starting the Examination Process
Introduction to the Audit ............................................................................2-1
Coordinated Issues .....................................................................................2-2
Significant Issues........................................................................................2-2
Return Identification Process .....................................................................2-3
Pre-Audit Planning2-4
Chapter 3, Specialization Within the IRS
Involving Specialists in an Examination……………………………… 3-1
Engineer…………………………………………………………… 3-1
Computer Audit Specialist………………………………………… 3-2
Financial Products Specialist……………………………………….. 3-2
International Examiner……………………………………………... 3-3
Employee Plans Specialist…………………………………………. 3-4 ment Tax Specialist………………………………………… 3-4
iiiSubject Page
Insurance Specialist..............................................................................3-5
Economist.............................................................................................3-5
District Counsel and Industry Counsel.................................................3-5
Market Segment Specialization Program....................................................3-6
Industry Specialization Program………………………………………….3-7
Summary ....................................................................................................3-7
Chapter 4, Interest on Nonperforming Loans
Introduction ................................................................................................4-1
Examination Techniques............................................................................4-2
Law.............................................................................................................4-5
Summary ....................................................................................................4-5
Chapter 5, Core Deposits and Covenants Not to Compete
Core Deposits .............................................................................................5-1
IRC Section 197 .........................................................................................5-1
Examination Techniques for Cases Under IRC Section 197 .....................5-2
Core Deposits Prior to IRC Section 197 ....................................................5-2
Intangibles Settlement Initiatives --
Pre-IRC Section 197 Cases ..................................................................5-3
Application of Pre-IRC Section 197 Law to Core
Deposit Intangibles...............................................................................5-3
Examination Techniques for Cases Before
IRC Section 197 .....................................................................................5-6
Covenants Not to Compete .........................................................................5-7
The Economic Reality Test ........................................................................5-8
The Mutual Intent Test5-11
The Strong Proof Doctrine and the Danielson Rule...................................5-13
Valuation of a Convenant Not to Compete .................................................5-14
Effect of IRC Section 197 ..........................................................................5-16
Examination Techniques............................................................................5-16
Summary .....................................................................................................5-18
ivSubject Page
Chapter 6, Gain/Loss on Foreclosed Property
Introduction ................................................................................................6-1
Computing the Basis of the Loan for Tax Purposes...................................6-2
Examination Techniques............................................................................6-3
Coordinated Issue Paper.............................................................................6-5
Chapter 7, Gross-Up Net Loans
Introduction ................................................................................................7-1
Coordinated Issue Paper7-1
International Tax Issues..............................................................................7-2
Brazilian Foreign Tax Credits ....................................................................7-3
Mexican Foreign Tax.....................................................................7-3
Articles ......................................................................................................7-4
Chapter 8, Mortgage Servicing Rights
Introduction ................................................................................................8-1
Examination Areas .....................................................................................8-2
Background Information ............................................................................8-2
Sale of Mortgage Loans & Mortgage Backed Securities ...........................8-3
Excess Servicing Fee..................................................................................8-4
Computation of the Excess Servicing Fee..................................................8-5
Prepayment of Mortgages...........................................................................8-5
Law.............................................................................................................8-6
SFAS 65 .....................................................................................................8-6
Examination Limits and Restrictions .........................................................8-7
Examination Techniques............................................................................8-8
Analysis of Rulings……………………………………………………...8-10
Articles .......................................................................................................8-12
Chapter 9, Loan Origination Costs
Introduction ................................................................................................9-1
Book Reporting of Loan Origination Costs ...............................................9-1
vSubject Page
Tax Reporting of Loan Origination Costs..................................................9-2
Law.............................................................................................................9-4
Change in Accounting Method...................................................................9-7
Examination Techniques............................................................................9-8
Summary ....................................................................................................9-10
Chapter 10, Bad Debts
Introduction ..............................................................................................10-1
Definition of a "Large" Bank....................................................................10-2
Reserve Method........................................................................................
Specific Charge-Off Method10-3
Charge-Off Mandated by Regulations......................................................10-4
Breakdown of Loan Classifications Used by Banking
Regulators...........................................................................................10-5
Conformity Election for Bad Debt Charge-Offs ......................................10-7
Bad Debt Recoveries................................................................................10-8
Bad Debt Reserve Recapture....................................................................
Examination Techniques..........................................................................10-10
Miscellaneous Items/Terms......................................................................10-12
Summary ..................................................................................................10-13
Chapter 11, FSLIC Assistance
Background ..............................................................................................11-1
Enactment of FIRREA ................................