The final regulations would provide guidance on when a loan held by a regulated financial company or a member of a regulated financial group would be conclusively presumed to be worthless for purposes of section 166 of the Internal Revenue Code.  The final regulations would replace existing outdated rules with simplified rules that would allow these entities to charge off debts in accordance with U.S. GAAP and regulatory rules. The final regulations would reduce compliance costs for taxpayers and the IRS.