Inter-Est
Interrelated Estate Tax Computations

Inter-Est is the only commercial program available that is specifically designed to compute the federal estate tax for the purpose of IRS audit situations, etc. It will compute a high percentage of your interrelated federal estate tax problems. Inter-Est was one of the first computer programs for interrelated estate tax computations to run on a micro. Versions of Inter-Est have been used in IRS audit situations since 1979. All IRS service centers and many IRS offices currently use it.

Two versions of Inter-Est are offered one for DOS ($595.00) and one for Windows ($695.00). Inter-Est supports three different file types in addition to the interest table file type. Each file type has different computational capabilities. Here is a short list of the program features and capabilities:

Case Files

These files are used for interrelated estate tax computations. The output can be used as an exhibit to a form or a claim. The IRS is familiar with our format and can usually understand what you are doing.

Interest Computations

Each interest table is kept in its own file where it can be edited or copies. The DOS version is limited to 40 interest periods while the Windows version has no limit to the number of interest periods.

Inter-Est supports the following interest computation features:

• Interest factors can be computed per Rev. Proc. 83-7 or Rev. Proc. 95-17 in addition to four other methods.
• Interest free period after a waiver.
• Restricted Interest - Supports TAM 8947005.
• Suspense Account for excess interest payments per TAM 9130001.
• Computes interest for federal, state, and foreign jurisdictions at one time.
• Supports a number of §6166 options related to the nature of the election and allocation of payments.

Flower Bonds

Supports standard flower bond computations.  For the purpose of interrelated computations, Inter-Est assumes that the flower bonds are in residue and are not included in a specific bequest.

Inter-Est supports interrelated computations where the executor’s commission is based on a percentage of the tax, or the attorney’s fee is based upon a percent of the tax and interest saved upon appeal.

Inter-Est supports this deduction to allow computations for earlier dates of death.

Marital Deduction

The computed marital deduction is the sum of three items: (1) An input specific bequest, (2) a computed formula bequest, and (3) a computed bequest of a percent of residue. Five different formulae are supported.  For more dificult interrelated computations additional complex allocations of expenses are also supported.

Charitable Deduction

The computed charitable deduction is computed just like the marital deduction except that there is no provision for formulae bequests. Inter-Est does not compute the factors for charitable remainders, etc. These factors must be computed using Brentmark’s Charitable Financial Planner or similar software.

GST Direct Skips

This provision will compute the tax for Part II and Part III of Schedule R. Supports bequests from residue, and there is also some support for the extension of GST tax under §6166 IRC.

Special Residue Computation

Where there is a §2044 property from a prior estate, Inter-Est will compute the §2207A right of reimbursement of tax. A similar adjustment for the right of reimbursement of state tax is also supported for about half the states.

Complex Computations

There is a special provision for tax apportionment and expense allocation with over twenty categories of expenses that can be used for allocation purposes.  This feature helps you complete difficult interrelated computations of marital, charitable or residue amounts.

Gift Tax Credit

The DOS version supports six transfers, and the Windows version has no limits on the number of transfers. This credit is also supported for several states.

Foreign Death Tax Credit

A credit for six countries is supported by the DOS version and the Windows version has no limits on the number of countries. Both statutory credits and treaty credits are supported. Limited support of interest computation is offered in the Windows version.   It is rare for interest on the foreign death tax to be deducted or to be interrelated.

Credit for Tax on Prior Transfers

The DOS version supports six transfers, and the Windows version has no limits on the number of transfers. This credit is also supported for some states.  The Case file type only computes the second limitation as the first limitation is never interrelated.   If you need to compute the first limitation you should use the Prepare file type.

Federal Penalty

The main penalties supported are the §6651(a) (failure to file or pay) penalty, the §6653(a)(1) (negligence) penalty, the §6653(a)(2) (fraud) penalty, the §6660 (accuracy related) penalty, the §6662/§6663 (accuracy related) penalty, and the §6651(a) (failure to file or pay) penalty.

Also supports the §6651(f) penalty, the §6166(g)(3) penalty and the failure to pay penalty related to late payment of a §6166 installment payment.

These penalties might or might not be interrelated.  Support is also provided for interest on penalties.

State Computation

There are three general provisions for (1) SDTC, All, (2) SDTC, Part, and (3) a fixed dollar amount plus around twenty special provisions for specific states. The DOS version will compute tax and interest for up to three states in one computation. The Windows version has no limit.

Increased Estate Tax

Supports §4981A(d) additional estate tax on excess retirement accumulations.

706NA Computations

Supports 706NA computations for non-resident aliens under §§2101-2210 IRC. This support is not complete, but it should allow you to make basic computations when an interest computation is required.  Other interrelated features such as marital deductions should work correctly also.

Estate Tax Report Files

This is an additional file type supported by the Windows version of Inter-Est. With this feature you can write reports on Form 1273 as used by the IRS Estate Tax Attorneys.  It also supports the Appeals Report format. This can be used in an audit situation or to develop information for use with a Case File.  This file type does not support interrelated computations.  You must use a Case file to perform interrelated computations.

Gift Tax Report Files

This is an additional file type supported by the Windows version of Inter-Est. With this feature you can write reports on Form 3233 as used by the IRS Estate Tax Attorneys.  It also supports the Appeals Report format.  This can be used in a audit situation.  This feature does not support interrelated gift tax computations, but you can use the included Excel templates to do interrelated gift tax computations..

Interest Tables - Download Current Tables

We try to keep our interest tables current, but our state tables are not always current.  We do the best we can.  If your tables are out of date, you can download our current interest tables here:

Download Current Interest Tables    Tables.zip  (Last Update 8/30/01)

If you do not have a program to unzip this file you can go to WinZip.com to get a copy of WinZip.   Once you have dounloaded the file Tables.zip you should unzip it to get the the install program Tables.exe.  Just run Tables.exe and follow the instructions.   You should load the new interest tables over you old tables.  The install program will make a backup copy of your old interest tables if you desire.

Templates for Microsoft Office - Download Current Templates

We furnish some templates for the use by IRS Estate Tax Attorneys.  Some are used as forms that are not of much use to taxpayers, but one has the federal estate tax tables and another has the federal gift tax tables.  The tax tables are set up so you can use them with a simple function call.  You are welcome to download these templates and use them in any manner you desire.

Download Current Templates    Templates.zip  (Last Update 8/17/01)

We cannot provide support for these templates in the same manner we do for Inter-Est, but we will try to help you with any problems.

Recommended Software

Inter-Est does not compute remainder factors using the IRS tables.   We use two different programs to compute these factors for use in our computations:

• Charitable Financial Planner from Brentmark Software, 3505 Lake Lynda Dr., Suite 212, Orlando, FL 32817-8327, Email: sales@brentmark.com,  Telephone: 1-800-879-6665, FAX: (407) 306-6107 and
• Tiger Tables from TSP Software, Thompson Coburn LLP, One Mercantile Center, St. Louis, Missouri 63101,Email: info@tigertables.com,   Telephone: (314) 552-6187.

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Cecil Cammack, Jr. dba
Cammack Computations Co.
P. O. Box 725, Cleburne, TX 76033
Voice: 1 (800) 594-5826
Email: cammack@inter-est.com
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