Sec. 166 prop. regs. expand bad debt conformity for regulated entities.

The article focuses on the U.S. Internal Revenue Service (IRS's) proposed regulations under Sec. 166, which aim to broaden bad debt conformity for regulated financial entities. Topics include: the introduction of a new allowance charge-off method that expands eligibility beyond current methods; the elimination of outdated safe harbors and requirements for express determination letters; and the procedural changes for adopting the new method, which may benefit regulated entities.