The Internal Revenue Service and the Treasury Department selected a banking-related request in 2013 for guidance under the IRS’ Industry Issue Resolution (IIR) program. The 2013 request came from the American Bankers Association. The request asked for guidance on four issues: The tax treatment by banks that have made the conformity election under the rules for worthless debts concerning differences between the generally accepted accounting principles and regulatory accounting requirements for estimating the fair market value of collateral and the Service’s current examination view of fair market value, including the treatment of estimated selling costs. Documentation to satisfy the conclusive presumption of worthlessness provision for banks that have not made the conformity election. Conformity election eligibility for the controlled subsidiaries of a bank that has made the conformity election. OREO (other real estate owned) expenses: current deduction for carrying costs – including maintenance and necessary repair costs and automatic accounting method change for banks that are currently capitalizing such costs. The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of taxpayers. For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties affected by the issue. The goal is to recommend guidance to resolve the issue. This benefits both taxpayers and the IRS by saving time and expense that would otherwise be expended on resolving the issue through examinations. At any time, business associations and taxpayers may submit tax issues that they believe could be resolved through the IIR program. IIR selection criteria and submission procedures are outlined in Revenue Procedure 2003-36, available at IRS.gov.