IRS liberalizes interest suspension rule.

• Position: IRS UPDATE - Internal Revenue Service - Brief Article

IRS Revenue Ruling 2005-4 liberalizes the rule for interest owed on additional taxes voluntarily reported by taxpayers.

An existing regulation suspends interest accrual for individuals on taxes due if the IRS does not notify a taxpayer of the potential liability within 18 months after the filing of the return. This interest suspension continues for 21 days after the IRS notifies the taxpayer of additional taxes due.

Now, Revenue Ruling 2005-4...