SIGTARP Page (August 26, 2015)

On August 10, 2010, SIGTARP issued the engagement memo. It says (my boldface): "As part of our continuing oversight of the Troubled Asset Relief Program ("TARP"), and at the request of Representative Dennis Kucinich, we are initiating an evaluation to assess the decisionmaking process regarding the waiver to Revenue Code Section 382 (JRS Notice 2010-2, hereafter the "Waiver") for institutions, such as Citigroup Inc., whose securities are acquired or disposed of by the Department of the Treasury ("Treasury") under TARP.

Our specific objectives are to determine (1) the rationale behind Treasury's decision to issue the Waiver; (2) whether Treasury was aware of any tax effect that may result from the issuance of the Waiver; (3) determine the principal decision makers involved in issuing the Waiver; and (4) the extent to which Treasury's policy to timely dispose of TARP investments factored into the decision to issue the Waiver.

We plan to start work on this engagement immediately. This work will be conducted under evaluation engagement code 002. We expect to perform audit work at both the Internal Revenue Service and Office of Financial Stability. A member of my staff will contact you shortly to arrange an entrance conference. At that time, we will discuss our scope, methodology, and timeframes in more detail. If you have any questions in the meantime, please contact Mr. Kurt Hyde, Deputy Special Inspector General for Audit, at 202-622-4633."

The January 2011 quarterly report said (my boldface): �SIGTARP has ongoing audits and evaluations on 10 previously announced topics and expects to issue those reports in the coming months.�

Up to and including the April 2011 quarterly report, each quarterly report listed the audits and evaluations still in progress like this: " Decision-Making Process Regarding Citigroup Deferred Tax Assets
Undertaken at the request of Representative Dennis Kucinich, this evaluation is examining (i) the rationale behind Treasury�s decision to issue Notice 2010-2 (the �Notice�) regarding Internal Revenue Code Section 382, which limits the amount of net operating losses a corporation experiencing a change of ownership may use to offset future taxable income; (ii) whether Treasury was aware of the tax effect that may result from the Notice�s issuance; (iii) the identity of principal decision makers involved in issuing the Notice; and (iv) the extent to which Treasury�s policy to timely dispose of TARP investments factored into the issuance decision."

Starting with the July 2011 quarterly report, SIGTARP changed the style of reporting its audits and evaluations and doesn�t mention all of their names. Instead, it said this:

"SIGTARP has initiated a total of 28 audits and two evaluations since its inception. SIGTARP has issued a total of 14 audit reports, including one since the close of the quarter ended March 31, 2011. In addition, 13 other previously announced audits and evaluations are in progress. Some examples of ongoing audits and evaluations include a review of the following: (i) process that Treasury and Federal banking regulators established for banks to repay Treasury and exit TARP; (ii) criteria used by Treasury to select states and programs to receive money under the Hardest Hit Fund; (iii) review of Treasury and the Auto Task Force�s role in the decision of General Motors Company to �top up� the pension plan for hourly workers of Delphi Automotive LLP; and (iv) application of the HAMP net present value test."

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