Company: FCNCB
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000798941-25-000010
Chunk: 221

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 221
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 2045, the state tax credits have an indefinite carryforward, and the non-U.S. credits begin to expire in 2035.During 2024, management updated BancShares’ forecast of future U.S. state taxable income. The updated forecast continues to support a valuation allowance of $17 million (net of federal benefit) on U.S. state DTAs relating to certain state NOLs as of December 31, 2024.BancShares’ ability to recognize DTAs is evaluated on a quarterly basis to determine if there are any significant events that would affect our ability to utilize existing DTAs. If events are identified that affect our ability to utilize our DTAs, changes to the valuation allowance may be required. 

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Liabilities for Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of UTBs is as follows:Unrecognized Tax BenefitsDecember 31, 2024December 31, 2023December 31, 2022dollars in millionsLiabilities for Unrecognized Tax BenefitsInterest / PenaltiesTotalTotalTotalBalance at beginning of period$28 $3 $31 $30 $31 Effect of CIT Merger— — — — 6 Additions for tax positions related to current year8 — 8 — — Additions for tax positions related to prior years42 6 48 5 1 Reductions for tax positions of prior years— — — — (2)Expiration of statutes of limitations(1)— (1)(2)(1)Settlements— — — (2)(5)Balance at end of period$77 $9 $86 $31 $30 BancShares recognizes tax benefits when it is more likely than not that the position will prevail, based solely on the technical merits under the tax law of the relevant jurisdiction. BancShares will recognize the tax benefit if the position meets this recognition threshold determined based on the largest amount of the benefit that is more than likely to be recognized.During the year ended December 31, 2024, BancShares recorded a net increase in UTBs, including interest and penalties. The net increase primarily related to additions for tax positions related to prior and current years and was partially offset by the expiration of statutes of limitations. As of December 31, 2024, the accrued liability for interest and penalties is $9 million. BancShares recognizes accrued interest and penalties on UTBs