A bill to amend the Internal Revenue Code of 1954 to require conformity between the loan loss reserve accounts maintained by certain financial institutions for tax purposes and for financial statement purposes.

Summary

Amends the Internal Revenue Code to provide that the reasonable addition for the taxable year to the reserve for bad debts of any bank shall be the amount necessary to bring the balance of the tax reserve for bad debts as of the close of the taxable year to an amount equal to the amount of the financial statement reserve for bad debts maintained by the taxpayer as of the close of such taxable year. Limits the amount of the additional bad debt reserve for any taxable year to the amount necessary to bring the balance of the tax reserve for bad debts up to 1.5 percent of total loans of the bank. Provides that the amount of the deduction allowed for any taxable year shall not exceed an amount equal to one-half of one percent of the total loans of the bank as of the close of the taxable year. Requires that the difference between the tax reserve for bad debts and the financial statement reserve for bad debts shall be brought into conformity over a period of six years.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 7 June 1985

  Open at official source

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.