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

Ben joined the firm early in 2014 with many years of tax experience, both as an attorney and an accountant. He specializes in federal tax, controversy and procedure work, assisting with clients in the areas of income tax, estate and gift tax, property tax, sales and use tax, estate planning and many other tax matters. Ben's vast experience includes representing clients before the IRS, as well as representing the IRS before the U.S. Tax Court and during litigation before the federal district courts as a special assistant to the United States Attorney. Today, Ben leads the firm's IRS Practices & Procedures as a federal tax, controversy and procedure specialist and serves on Eide Bailly's National Tax Office team that is committed to helping clients resolve their tax issues.