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:
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.
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."
In our IRS Frequently Asked Questions series, we dive deeper into the frequently asked questions that may come up when dealing with IRS issues.
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Partner/IRS Tax Controversy Practice Leader
Does interest netting apply to your company? Find out.