There is a federal mandate for a business to charge interest on loans to or from its owners or for other related party loans. Sec. 7872 was enacted as part of the Tax Act of 1984. This Code section required loans between certain related parties, usually in excess of $10,000, to bear a minimum amount of interest based on the applicable federal rates (AFRs). With short-term rates well under 1%, the resulting amounts of self-charged interest can seem negligible but should be done.

One of our customers made this comment “How can I create a cash basis amortization schedule on an EIDL? Firm received EIDL loan and did not make payments for the past year. Under cash basis rules, I believe 100% of the first payments will be interest until the back interest is paid. Thank you, you'll have a lot of EIDL questions in the future. Consider making a blog post guide on how to run the calcs.”

The Government Accounting Standards Board (GASB) issued Statement No. 87, Leases. This replaces the previous lease accounting methodology and establishes a single model for lease accounting based on the foundational principle that leases are a financing of the right to use (RTU) an underlying asset. Following are highlights from GASB Statement No. 87 – Leases (ca.gov).

TaxInterest IRS/State interest and penalty software is the professional standard relied upon by both accounting firms nationwide and the IRS. TimeValue Software offers a wide range of training and educational tools that are highlighted below to facilitate the usage of the TaxInterest software.

You can find the TimeValue Software educational tools on the company website at www.TimeValue.com/support-resources. Here, you will find a webinar for TaxInterest, product Training Videos, frequently asked questions (FAQs), and Blog topics.

File In Time due date tracking and task management software helps you manage all your filings and project tasks. TimeValue Software offers a wide range of training and educational tools that are highlighted below to facilitate the usage of the File In Time software.

You can find the TimeValue Software educational tools on the company website at www.TimeValue.com/support-resources. Here, you will find a webinar for File In Time, product Training Videos, frequently asked questions (FAQs), and Blog topics.