IRS Practice Unit: Interest on Deferred Tax Liability (IRC §453A)

Explanation of interest on deferred tax liability in installment sales transactions, the IRS Large Business and International Concept Unit outlined in a practice unit released December 14. The steps an examiner would take to determine the interest amount include computing the deferred tax liability, computing the applicable percentage, determining the underpayment rate, and computing the interest due on the deferred tax liability. [IRS Practice Unit Interest on Deferred Tax Liability (last update July 15, 2021)]

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