A taxpayer does not have to impute interest on a receivable from sales if payment is to be made within six months.

Question

Quizplus · Accepted Answer

According to the IRS, a taxpayer does not have to impute interest on a receivable from sales if payment is to be made within six months. This is because the period of time is considered short-term and the interest that would accrue on such a short-term receivable is minimal. However, if payment is not made within six months or if there is no established repayment plan, imputed interest may be required.

A Taxpayer Does Not Have to Impute Interest on a Receivable