Part 20. Penalty and Interest
Chapter 2. Interest
Section 6. Methods of Computing Interest
20.2.6 Methods of Computing Interest
Manual Transmittal
April 27, 2016
Purpose
(1) This obsoletes IRM 20.2.6, Interest, Methods of Computing Interest.
Material Changes
(1) Content from IRM 20.2.6, Interest, Methods of Computing Interest, is incorporated and changed in IRM 20.2.1, Interest, Interest Introduction, Standards and Guidelines, which transmits a complete revision of the former IRM 20.2.1, Interest, General and Legal Authorizations, IRM 20.2.5, Interest, Interest on Underpayments, and IRM 20.2.7, Interest, Abatement and Suspension of Debit Interest. Content from IRM 20.2.6, Interest: Methods of Computing Interest, is tracked in the following table.
Subsection | (MM-DD-YYYY)New Location |
|---|---|
IRM 20.2.6.1, Methods and Rate Used | IRM 20.2.1.4, Types of Interest, and its subsections. |
IRM 20.2.6.2, Compound Interest | IRM 20.2.1.4, Types of Interest, and its subsections. |
IRM 20.2.6.3, Assessment of Interest Accruals | IRM 20.2.5.1, Underpayment Interest |
IRM 20.2.6.4, Interest Computation Tools | IRM 20.2.1.6, Interest Computation Tools and Reports: Manually and Systemically Calculated Interest, and its subsections. |
IRM 20.2.6.5, Computer Generated Interest Computations | IRM 20.2.1.5, Normal and Restricted Interest, and its subsections; IRM 20.2.5.1, Underpayment Interest |
IRM 20.2.6.6, Steps to Compute Interest | IRM 20.2.1.5, Normal and Restricted Interest |
IRM 20.2.6.7, Types of Interest Suspensions | IRM 20.2.7, Interest: Abatement and Suspension of Debit Interest, and its subsections. |
IRM 20.2.6.8, Payment Allocation and Reallocation | IRM 20.2.5.1, Underpayment Interest; IRM 20.2.7, Interest: Abatement and Suspension of Debit Interest, and its subsections. |
IRM 20.2.6.9, Helpful Interest Facts | IRM 20.2.1.4, Types of Interest; IRM 20.2.5.1, Underpayment Interest; IRM 20.2.5.6, Restricted Interest; IRM 20.2.7.8, IRC 6601(c) Suspension of Interest on Deficiencies |
Effect on Other Documents
IRM 20.2.6, Interest: Methods of Computing Interest, dated June 18, 2010, is obsolete as of the date of this transmittal.
Audience
This IRM is intended for employees of all operating divisions who work with interest.
Effective Date
(05-10-2016)
Mark Pursley
Acting Director, Servicewide Operations
Small Business/Self-Employed
