With these penalty adjustments, interest must be manually computed and restricted by input of TC 340. 6676 was repealed for returns and statements, if the due date is after December 31, 1989. With these adjustments, penalty and interest must be manually computed and restricted by input of TC 340. If Then The extension is later reversed, as shown by TC 462 Interest is computed from the original return due date. This penalty is assessed or abated with Reference Number 680.
Interest is computer generated on penalty assessments according to the above rules.
Do NOT manually compute and assess interest on the above penalties unless a manual restriction of interest is necessary for some other reason. Exhibit 104.8.2-2, Interest on Penalties, shows how the interest rules described above are applied. Exhibit 104.8.2-1, Return Due Date Chart. Interest on Penalties Internal Revenue Manual Hndbk.