Bank personnel are required to obtain and properly interpret tax returns for both commercial and consumer lending purposes. The first part of this seminar will concentrate on personal tax return analysis, and the second part will focus on analysis of various business tax returns.
Then the Fair and Accurate Credit Transaction Act (FACTA) became law on December 4, 2003. The FACT Act revised the FCRA. The revisions, which unfolded over an eight-year period, resulted in substantial changes for all financial institutions.
Many community banks attempt to use versions of their residential formats and policies to administer commercial construction loans; however, this generally does not adequately control the situation due to several important differences between residential and commercial projects.
We will begin with a brief review of analyzing a business owner’s personal “1040” tax return, as well as the return of an LLC, S corporation, and C corporation – including Schedules M-1 and M-2, Schedule K-1, pass-through transactions, and other deductions.