If we choose not to file the TD F 90 for revocations, are we required to document anything in the file as to why the exemption was rescinded? My internal auditor wrote me up for this?

I don't know that it is required, but our examiners certainly wanted to know why we revoked them. We did document it.

If you check the instructions for the proposed new DEP form, the statement about not being necessary to file a DEP when revoking an exemption has disappeared.

Your internal auditor may be expressing a personal opinion. Issuing the exemption was voluntary i.e. you did not need any reason to revoke it, i.e. "It was Tuesday and I didn't have anything else to do" would do nicely. So, I'm not certain why you would be criticized for failing to document the "why" of revocation as long as the fact of revocation was properly communicated to affected personnel. It may be that your BSA policy expressly requires issuance of exemptions wherever they are avaialable and, thus, if one is revoked there is an implication that the policy implies a reason is necessary.

The instructions to the current form do not require you to notify the government that it has been revoked, but even if you do send it voluntarily, the form does not ask "why."

Don't you have to file the TDF 90 if you are revoking exemptions? We are revoking all of ours, and I thought it was mandatory to notify the IRS of the revocation via the form TDF 90...please clarify...thanks.

No, it is not mandatory to file the notice of revocation. The current form indicates this is optional. Some banks have a requirement to file the revocation form in their policies. I would expect those banks to file, lest they be cited for failing to follow their own requirements.

may not be required by law but our recent exam made it required. something they can work with and something that makes sense to be able to say why you did what.

that internat auditor was thinking ahead and getting you ready for an exam. listen to them. I wish ours had said that long ago

FDIC examiner questioned why we hadn't formally revoked our exemptions just today. Even if it isn't required, I would strongly recommend you revoke formally.

If they want to change the instructions for TDF 90 to require filing of revocations that is when I would file. By not filing you are following the instructions provided. There are few regulations I can think of where if given the option TO or NOT TO do something that you opt to do it.

I have a customer that I am wanting to revoke the exemption on. They did not have at least 8 reportable transactions last year. They have had 2 so far this year. If I revoke, will we need to go back and file CTR's on the two that we have had this year?

No. If you revoke, use a current effective date and plan to start filing from that date forward.