OCC 98-56
Subject: Statement on Income Tax Allocation
            in a Holding Company Structure
Description: Interagency Policy Statement
Date: December 10, 1998

TO:  Chief Executive Officers of National Banks, Department and
     Division Heads, and all Examining Personnel


On November 23, 1998, the Office of the Comptroller of the
Currency, the Federal Reserve Board, the Federal Deposit
Insurance Corporation, and the Office of Thrift Supervision 
published the attached joint policy statement on intercompany tax
allocation agreements.  The policy statement provides guidance
regarding the allocation and payment of income taxes by banks
that file an income tax return as members of a consolidated
group.  In general, intercorporate tax settlements between a bank
and its parent should result in no less favorable treatment to
the bank than if it had filed its income tax return as a separate
taxpayer.

In addition, the policy statement recommends that each depository
institution have a written, comprehensive tax allocation
agreement addressing intercorporate tax policies and procedures.

For more information, contact Eugene Green, at (202) 874-4933 or
Tom Rees, at (202) 874-5411, Office of the Chief Accountant.




_______________________________________
Kevin J. Bailey
Deputy Comptroller 
Core Policy


Attachment   63 FR 64757