New IRS Tool for Long-term Contracts

If you work on large, multi-year construction or manufacturing projects, there’s a new online tool to help you taxwise. The IRS’s new Excel-based Percentage-of-Completion Method (PCM) Look-Back Interest Calculator supports calculations required for Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts. Tax professionals may find the calculator useful when computing look-back interest for clients with long-term contracts. #IdeaoftheDay