Conclusive Presumption of Worthlessness of Debts Held by Banks

Paragraph (d)(3) of section 1.166-2 of the previously approved regulations allows banks and thrifts to elect to conform their tax accounting for bad debts with their regulatory accounting. An election, or revocation thereof, is a change in method of accounting. The collection of information required in section 1.166-2(d)(3) is necessary to monitor the elections.

The latest form for Conclusive Presumption of Worthlessness of Debts Held by Banks expires 2022-04-30 and can be found here.