Interest Netting Resource


Interest netting computations require the right 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. 

Contact us today to see if interest netting applies to your company.

What inspires you, inspires us. Let’s talk.


Ben J. Peeler

Partner-in-Charge of IRS Tax Controversy Services


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