BB 92-57
BANKING ISSUANCE

Comptroller of the Currency
Administrator of National Banks
Type:  Banking Bulletin
Subject:  IRS Express Determination Letters

To:  The Chief Executive Officers of All National Banks


The Internal Revenue Service (IRS) has published revisions to its
regulation section 1.166-2(d)(3) and Revenue Procedure 92-18 effective
October 1, 1992. These regulations address financial institutions'
election to deduct charge-offs for income tax purposes in the same year
the charge-offs are recorded for regulatory purposes. To be eligible for
this election, the institution must obtain an "express determination"
letter from its primary regulator.
 
The revised rules require that a bank making this election obtain the
"express determination" letter in conjunction with examinations involving
the loan review process that are conducted after October 1, 1992.

Examining Circular 216 Supplement 1 addressing the procedures for issuing
an "express determination" letter is currently being distributed to all
examiners. A copy of the Examining Circular is attached.






Jerilyn Gilland
Acting Chief National Bank Examiner


Attachment

Date:  October 14, 1992