Take the Uncertainty Out of Calculating IRS Interest and Penalties
Accurate interest and penalty calculations shouldn’t be difficult. Checking an IRS transcript. Preparing an amended return or a return for a late or non-filer. Determining penalty amounts. TaxInterest software is the professional standard that helps you calculate the correct amounts – easily, reliably, and with no guesswork.
TAXINTEREST SETS THE BAR HIGH FOR ACCURACY
- Simplify calculation of both individual and corporate interest
- Calculate Federal (Section 6621) underpayment interest from 1954
- Determine large corporate “Hot” interest
- Calculate GATT overpayment interest refund automatically
- Produce interest and penalty accruals for FIN 48 (ASC 740-10) uncertain tax positions (UTPs)
- Automatically calculate interest on penalties and specify notice dates
COMPUTE THE POTENTIAL EXPOSURE FOR PAST DUE TAXES
- Verify figures from IRS or state transcripts with confidence
- Quickly calculate common federal penalties including Failure to File 6651(a)(1), Failure to Pay Tax Shown 6651(a)(2), and Failure to Pay Amount Assessed 6651(a)(3)
- Accuracy Related penalties include Negligence 6662(c), Substantial Understatement 6662(d), Fraud (6663), and more
- Create detailed reports to document your work
CALCULATE UNDERPAYMENT AND OVERPAYMENT INTEREST FOR ALL STATES WITH INCOME TAXES
- Individual and corporate calculations
- Computation methodologies for each state
- Calculate Canadian federal, provincial, and territorial interest
- Customize rates as needed for sales tax, estate tax, lookback, excise, and more
- Produce interest accruals for FIN 48 uncertain tax positions (UTPs)
- Catch and eliminate costly mistakes
TAXINTEREST REPORTS ARE WIDELY RECOGNIZED BY TAXING AUTHORITIES
- A great tool if there is a discrepancy with the IRS or state agency
- Reports display rates, calculation methods, monthly interest accruals, factors, and more
- Professional and easy to read
“TaxInterest is the only way to check your bills from the IRS. Manual calculations are impossible and I don’t feel comfortable with the calculations from my tax package."
"I use TaxInterest proactively to show my clients position and to negotiate with the IRS.”
"Our Fin 48 solution software doesn’t do interest calculations. TaxInterest has been the perfect complement to handle that for our firm.”
"I had to accrue interest on a bankruptcy from an old subsidiary. Our accounting firm recommended TaxInterest and it gave us the numbers we needed. We also plan to use it for FIN 48.”
"TaxInterest is a great tool for doing Excise Tax refunds. We rely on it every quarter.”
"The IRS charged my client $20,000 in delinquent penalties. I did the calculation and saved my client $16,000. I charged a small percentage of the savings and made $1,000 an hour for that. You can use it to fight the IRS. My clients know exactly what they owe.”
"TaxInterest is worth every penny. It is vital for checking interest figures. TaxInterest can pay for itself in one use!”
"I saved a client $3,000 on a deficiency. I made more than I paid for the software right there.”
TaxInterest Takes the Unknown Out of Calculating IRS Interest and Penalties
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Frequently Asked Questions
Are the state's interest calculation methods built into the program?
Many states calculate interest differently from daily compounding to annual compounding to exact days with simple interest. The calculation methodology is built in for each state.
Can I use TaxInterest for other past due tax amounts other than income taxes?
The IRS has one interest rate and some deviations from that. Most states have one interest rate for all their taxes. So the answer is probably yes. There are a few states that have different rates for different taxes. You can build custom tables in TaxInterest too.