Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 55-24

1955-1 C.B. 283

Full Text

Rev. Rul. 55-24

Where a bank, using either the moving average percentage of actual bad debt losses to loans in determining additions to its reserve for bad debts as provided in Mimeograph No. 6209, C.B. 1947-2, 26, or the average experience factor based on any 20 consecutive years of bad debt experience after 1927 as provided in Revenue Ruling 54-148, C.B. 1954-1, 60, has recovered during any of the 20 years used in computing either experience factor an amount of a loan charged off as a bad debt prior to the representative 20-year period, the amount of recovery should be taken into account for the year of recovery in determining the bank's moving average percentage or its average experience factor