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20.2.6.6
(06-24-2008)
Steps to Manually Compute Interest
-
To compute interest to a specific date after a tax underpayment and
penalties have posted:
| If |
Then |
| The account is not restricted from computing
interest
|
Use CC INTST or CC FTPIN |
| The account is restricted from computing interest,
or module conditions exist that prevent systemic calculations
|
Manually Compute |
-
Use the following process to determine the net amount of interest to
be assessed or abated. This process allows for consideration of any interest
free-periods and allows comparison of the adjusted amount to interest already
assessed. Use either CC COMPA or the ACT/DMI program.
-
Using a current TXMOD or Master File transcript, compute a running module
balance on the entire tax module.
-
Enter debits and credits on the appropriate dates.
-
Suspend and resume interest (on a specific amount if necessary) for waiver/suspension
periods.
-
Compare the amount of interest assessed on the module to your interest
computation to determine the interest assessment (TC 340) or abatement (TC
341). Compare the module balance plus/minus your adjustment with the balance
of interest and principal on your computation. If the balances are not the
same, go through your computation to determine if there is an error in your
entries.
Note:
Always balance your computation with the tax
module balance plus/minus your adjustment.
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