Fortner Bayens, P.C. Banking Letter - January 2019 Edition

Government Shutdown and the IRS

Joseph M. Press, CPA, CFE

On January 13, 2019, the partial government shutdown moved into its 23rd day, making it the longest such event to date and, at present, there is no proposed deal to bring it to an end.  In that the IRS is one of the affected agencies, what impact will this have on payment deadlines, filing deadlines and the processing of tax returns (and the related refunds) going into the future?

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Regulation B - Joint Intent Primer 

Fred A. Lutz, CRCM, CAMS

This article will help to answer the questions of “Who”, “When” and “How” when complying with the statutory requirements of the CFPB’s Regulation B Joint Intent rules under 12 CFR 1002.7(d) and the commentary.


Let’s first take a look at the “Who”.   The regulation defines the “Who” as any person or entity. That means if two or more persons apply jointly, joint intent is required.  It also means that if a person and a business apply for credit, then joint intent applies; as well as when two or more business entities apply.  The applicant’s role on the application does not matter, regardless if it is as a co-borrower, co-signer or guarantor. 

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New Tax Benefit for Stock Options

Mark J. Corey, CPA, JD

In Notice 2018-97, the Internal Revenue Service (IRS) offered initial guidance on a new provision of the tax code, section 83(i).  The IRS indicated that they intend to issue proposed regulations that will include the guidance in this Notice.  

Section 83(i), added to the tax code by the Tax Cuts and Jobs Act in 2017, generally provides income tax rules for the treatment of property transferred in connection with the performance of services.  Section 83(i) allows, “certain employees to defer recognition of income attributable to the receipt or vesting of qualified stock.”

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Elder Abuse - Does your Institution Comply with Legal Requirements?

Val J. Vought, CRCM, CAMS

The State of Colorado’s law that established the reporting requirements and the definition of a mandatory reporter was effective in July 2014.  Under the final rule a financial institution and staff members individually are within the definition of a mandatory reporter.  The mandatory reporter must report suspected abuse, neglect and/or financial exploitation to the police or local law enforcement officials within 24 hours of becoming aware and/or witnessing an act of abuse, neglect and/or exploitation against an “at-risk elder.” 

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SEC Clamping Down on "Individually Tailored" Disclosures 

David J. Bayens, CPA

Over some time, the SEC has been waging a battle with certain registrants over what is termed “individually tailored” accounting.  These are disclosures of non-GAAP financial information that may be misleading.  For example, in 2016, the SEC was critical of Tesla for adding back certain costs to revenue calculated under generally accepted accounting principles in its presentation of certain financial metrics.

The SEC has been concerned that companies may be using non-GAAP data to mislead investors.  At an AICPA conference, SEC Chairman, Jay Clayton, stated, “There has to be a similar consistency in the reporting of non-GAAP numbers and key performance indicators (KPIs) as we expect in GAAP numbers.”

Recently the SEC provided more clarity regarding what constitutes “individually tailored” accounting.  

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