Guidance on the impact of new tax laws passed by Congress in December will be issued by the federal banking agencies later this month – but the impact of the new laws, where necessary, should be reflected in year-end call reports, according to the Federal Deposit Insurance Corp. (FDIC).
In its first Financial Institution Letter (FIL) for 2018, the FDIC told insured banks and savings institutions that they should note that Accounting Standards Codification Topic 740, Income Taxes, “requires the tax effects of changes in tax laws or rates to be recognized in the period in which the law is enacted.” The FIL is titled “Consolidated Reports of Condition and Income for Fourth Quarter 2017” and lays out the steps for filing call reports for the end of the year.
The letter states that “effects of the changes in tax laws and rates enacted on December 22, 2017, in the Tax Cuts and Jobs Act should be reflected in the Call Report for December 31, 2017.” The letter adds that, because of the significance of the changes in the federal tax code, “the agencies plan to provide guidance to institutions that addresses the changes for purposes of the year-end 2017 Call Report in January 2018.”
Aside from that, the FIL notes that the fourth-quarter call report includes no new or revised data items, nor an instruction book update. Institutions are advised to refer to included “supplemental instructions” for December 2017 for “additional guidance on certain reporting issues.”
With few exceptions, completed call reports are due back to the FDIC by Jan. 30, the letter states. “No extensions of time for submitting Call Report data are granted,” the letter adds.