WASHINGTON -- Regulators and the Internal Revenue Service, bowing to pressure from bankers, have agreed to return to an earlier system for verifying loan that have been charged off.

The IRS will again rely on regulators to certify that each bad loan has been charged off properly. For the last two years, the regulators and IRS had been arguing over a proposal that regulators certify only a bank's methods for classifying loans.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.