Interest netting computations require specific expertise.

A corporation that has overpaid and underpaid tax within overlapping federal tax years may be entitled to interest relief. However, the rules and regulations surrounding penalties and interest of over and underpayments can be confusing. Interest netting helps equalize the differential in a claim for a refund by: 

  • Determining related overlapping periods where different interest rates were charged
  • Identifying appropriate interest amounts and rates
  • Computing the net rate of interest

Typically, over and under payments or associated interest occurs as a result of a recent or ongoing tax deficiency or controversy proceeding. Interest netting can be used to offset the over and underpayment interest against each other, ultimately reducing what is owed and saving interest. 

We have saved clients millions of dollars in interest and penalties owed through interest netting and correcting errors in IRS assessments. Our experience with interest netting and working with the IRS can result in significant benefits, and you won't pay for interest netting services unless we are successful.

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I truly enjoy and respect my relationship with the staff at Eide Bailly. We continually receive professional service and I will always look to the Firm to be innovative and pro-active in informing us of tax issues, planning or other beneficial ways to conduct our corporate and personal affairs.
Rick McKinney
PresidentMcKinney Partnership Architects PC

Does interest netting apply to your company? Find out with Eide Bailly.

Our team of professionals can help you with a variety of IRS tax collection and debt needs.

Interest Netting Resource Leadership

Ben Peeler

Ben J. PeelerJ.D., CPA, LL.M.

Partner/IRS Tax Controversy Practice Leader