1120-US: Determining when a financial institution is considered a large bank (FAQ)

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Question

How does UltraTax CS/1120 determine if the financial institution is considered a large bank?

Answer

Per Regulation 1.585-5(b)(1), an institution is a large bank if its average total assets are greater than $500,000,000 or if the institution is a member of a parent-subsidiary controlled group and the average total assets of the group are greater than $500,000,000 for the taxable year or any prior-taxable year after 12/31/86.

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