US Bank Regulators Seek Stricter Tax Refund Rules

Law360, New York (December 19, 2013, 3:53 PM EST) -- U.S. regulators on Thursday proposed new rules that would force bank holding companies to clarify the legal relationship to their subsidiaries, a change the government said would help clear up tax disputes that have arisen during bankruptcy proceedings.

The new rules would require financial institutions and their corporate parents to state explicitly which entity is entitled to funds stemming from a tax refund, the Federal Deposit Insurance Corporation said. The regulations would require banks to tighten language they are allowed to use in tax allocation agreements...
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