FBLG Banking Letter - March 2019 Edition

So, How's That 2019 Tax Filing Season Going? 

Joseph M. Press, CPA, CFE

As most every reader of this newsletter is aware, the Tax Cuts and Jobs Act (TCJA) was passed into law in December 2017.  Most of the provisions did not become effective until 2018, giving the IRS the opportunity to redesign tax forms, draft new instructions and publications, and publish needed regulations and notices.  Meanwhile, tax practitioners would become educated on the nuances of all the changes and bring their clients up to speed.  What could possibly go wrong?

To read more, click here. 

Regulation E Error Resolution and Interest-Bearing Accounts 

Val J. Vought, CRCM, CAMS

The Electronic Fund Transfer Act was passed in 1978.  It was intended to protect individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers.  These services include:

  • transfers through automated teller machines (ATMs);
  • point-of-sale (POS) terminals;
  • automated clearinghouse (ACH) systems;
  • telephone bill-payment plans in which periodic or recurring transfers are contemplated;
  • remote banking programs; and
  • remittance transfers.

A good understanding of these services and the financial institution’s responsibilities is essential for electronic transfer functionality and processing.

To read more, click here. 

Real Estate Rule Change

Dawn Thompson

High volatility commercial real estate loans (more commonly known as HVCRE’s) are loans to borrowers who have contributed less than 15% of a project’s completed cost.  Banks have lobbied for changes to this regulation, which penalizes borrowers who have built equity in the land, based on years of ownership. It also penalized the banks, as it required them to hold an additional 50% capital against these loans to maintain the same capital ratios.

To read more, click here. 

Financial Exec's Worried About The Numbers

David J. Bayens, CPA

In late 2018, Blackline, a provider of cloud-based products for accounting and finance applications, commissioned a survey of corporate executives and financial professionals.  The purpose of the survey was to gauge confidence levels in financial data and the perceived impact of errors on businesses.

A summary of the responses included the following:

  • 70% had made decisions based on inaccurate data.
  • Over half (55%) said they weren’t confident they could identify errors before the results are reported.
  • 71% of the C-level respondents claimed to completely trust the accuracy of financial data.  However, only 38% of the financial professionals had the same conclusion.

To read more, click here.