20.2.8. Restricted Interest

Manual Transmittal

April 27, 2016

Purpose

(1) This obsoletes IRM 20.2.8, Interest, Restricted Interest.

Material Changes

(1) The material previously contained in IRM 20.2.8 is incorporated in other sections of IRM 20.2, Interest.

(2) Moves IRM 20.2.8.1, Restricted Interest Overview, to IRM 20.2.1.5, Normal and Restricted Interest.

(3) Moves IRM 20.2.8.2, Provisions Restricting and Prohibiting Interest, to IRM 20.2.5.6, Restricted Interest.

(4) Moves paragraphs (1), (2), and (14) of IRM 20.2.8.3, Manual Computations, to IRM 20.2.1.5.2, Manual Calculation of Interest.

(5) Moves paragraphs (3) through (13) including the revision in IPU 14U1353 issued on 9-16-2014, of IRM 20.2.8.3, Manual Computations, to IRM 20.2.5.6.2, Manual Computations.

(6) Moves IRM 20.2.8.4(2), Credit Availability Date for Debit Interest Computation, to IRM 20.2.5.1.1.2, Availability Dates for Interest Calculation and Offset.

(7) Moves IRM 20.2.8.5, Interest Computation Software, to IRM 20.2.1.6, Interest Computation Tools and Reports: Manually and Systemically Calculated Interest.

(8) Moves IRM 20.2.8.6, Reasons for Restricting, to IRM 20.2.5.6.1, Reasons to Manually Compute Interest.

(9) Moves IRM 20.2.8.7, IRC 6601(c)Waiver - Interest Suspension Periods, to IRM 20.2.7.8.1, IRC 6601(c) Suspension Period Calculation.

(10) Moves IRM 20.2.8.8, Documentation, to IRM 20.2.1.5.2.1, Manual Calculation of Interest - Documentation.

(11) Removes IRM 20.2.8.9, Overpayment of Original Tax When Liability Exists for Interest, since this information is already contained in IRM 20.2.9, Interest on Carryback of Net Operating Loss.

(12) Moves IRM 20.2.8.10, Assessments Against Treasury Department Embezzlers (NMF), to IRM 20.2.11.15, Assessments Against Treasury Department Embezzlers (NMF).

(13) Moves IRM 20.2.8.11, Non-Restricting Transaction Code (TC) 340, to IRM 20.2.5.6.3, Non-Restricting Transaction Code (TC) 340.

(14) Moves IRM 20.2.8.11.1, Subsequent Manual Interest Accrual Processing, to IRM 20.2.5.6.3.1, Subsequent Manual Interest Accrual Processing.

(15) Moves IRM 20.2.8.12, Offers in Compromise (OIC), to IRM 20.2.11.11, Offers in Compromise (OIC).

(16) Moves Exhibit 20.2.8-1, Provisions Restricting and Prohibiting Interest, to IRM 20.2.1, Interest Introduction, Standards and Guidelines.

(17) Removes Exhibit 20.2.8-2, Interest-Free Period - IRC 6601(c) and IRC 6404(g) Interest Suspension Periods.

(18) Moves Exhibit 20.2.8-3, Input Screen of Non-Restricting TC 340, to IRM 20.2.5, Interest on Underpayments.

Effect on Other Documents

IRM 20.2.8, dated 4-28-2014, is obsolete on effective date of this transmittal. Content from this IRM is being incorporated into IRM 20.2.1, Interest Introduction, Standards and Guidelines, IRM 20.2.5, Interest on Underpayments, IRM 20.2.7, Abatement and Suspension of Debit Interest, and IRM 20.2.11, Miscellaneous Interest Provisions.

Audience

This IRM is intended for servicewide use by all employees who handle computations of interest.

Effective Date

(05-10-2016)

Mark Pursley
Director, Servicewide Operations
Small Business/Self Employed