MEDFORD, Ore.--(BUSINESS WIRE)--People’s Bank of Commerce (OTCBB: PBCO) announced today an accounting change to recover prior year taxes associated with depreciation expenses.
In conjunction with the bank’s 2017 federal and state tax returns, filed on October 15, 2018 the bank filed form 3115 Application for Change in Accounting Method. People’s Bank (the “filer”) requested to make this depreciation accounting method change for assets that it holds directly and for assets held by its unconsolidated subsidiary, Barnett Highland, LLC.
The result of the Change in Accounting Method and the normal operations of the bank was an overpayment of federal taxes of $615,706 and an overpayment of tax to the State of Oregon of $88,905. Both amounts were credited to 2018 estimated tax.
Ken Trautman, President and CEO of the bank explained: “With the new federal corporate income tax rate moving to twenty-one percent it made sense to restate depreciation expenses for prior years. Filing form 3115 allowed the bank to recover taxes without filing amended tax returns. This one-time event will allow much of the overpayment to replace the income tax expense in the fourth quarter.” The bank incurred about $65,000 in non-interest expense related to this matter which will be reflected in the fourth quarter.