Fdic Tax Allocation Agreement
Federal Deposit Insurance Corporation: Robert Storch, Chief Accountant, 202-898-8906 or firstname.lastname@example.org; Mark G. Flanigan, Legal Counsel, Legal Service, 202-898-7426 or email@example.com; Jeffrey E. Schmitt, Legal Counsel, Legal Service, 703-562-2429 or firstname.lastname@example.org. The agencies also received some informal requests regarding the applicability of addendum to holding companies that chose company status S for the purposes of federal income tax.  The supplementary declaration and inter-institutional policy statement relate to tax allocation agreements between an IDI, its parent company and its related companies. Accordingly, the declaration of endorsement and the declaration of inter-institutional policy do not apply to an IDI, its holding company or other related companies if the holding company is not subject to corporate tax at the federal or regional level. In this case, the U.S. Court of Appeals for the Ninth Circuit, which appears to be developing a federal common law rule, decided that, because an explicit or implied agreement between members of a consolidated tax reporting group results from a tax refund resulting exclusively from the compensation of the losses of a member of the group, such as an operating subsidiary, with the income of the member concerned in a previous year or later, benefit from the benefit of the member concerned. It concluded that the possibility of allowing the parent company to retain such a refund in the absence of an agreement that would unduly enrich the parent of the member concerned who awarded tax refunds to the parent of the group.  All tax allocation agreements are subject to the requirements of Section 23B of the FRA and tax allocation agreements that do not clearly recognize the existence of an agency contract may be subject to additional requirements in accordance with Section 23A.
 In general, Section 23B requires that affiliate transactions be conducted under conditions and circumstances that are essentially equivalent to those of IDI or at least as advantageous as comparable transactions involving unrelated companies, or, in the absence of similar transactions, on terms and circumstances that would be offered in good faith to unrelated companies.  Tax allocation agreements should require the holding company to immediately submit any payments due to the IDI as part of the tax allocation agreement and to set the date for that payment.