- 8.19.4.14 Research
- Exhibit 8.19.4-1 Form 3210 - CTF to Mail Settlement Offer
- Exhibit 8.19.4-2 Form 3210 - Agreement Forms Received in Appeals
- Exhibit 8.19.4-3 Form 3210 - Nondocketed Case Agreed Closing
- Exhibit 8.19.4-4 Form 3210 - Partial Settlement Agreement Forms
- Exhibit 8.19.4-5 Form 3210 - Appeals Issued FPAA/FSAA to TMP - CTF to Issue FPAA/FSAA to Investors
- Exhibit 8.19.4-6 Form 3210 - CTF to Mail FPAA/FSAA
- Exhibit 8.19.4-7 Form 3210 - Appeals Issued No Change FPAA/FSAA to TMP - CTF to Issue FPAA/FSAA to Investors
- Exhibit 8.19.4-8 Form 3210 - CTF to Mail No Change FPAA/FSAA
- Exhibit 8.19.4-9 Form 3210 - Decision Entered - Closing Docketed TEFRA Key Case
- Exhibit 8.19.4-10 Form 3210 - Tax Court Decision Entered - Case Appealed
- Exhibit 8.19.4-11 Form 3210 - Final Decision - Appellate or Supreme Court FPAA Package Information Page (For Tax Years Ending Before August 6, 1997)
- Exhibit 8.19.4-12 Form 3210 - Closing Case with Final Decision from U.S. Court of Federal Claims, District Court, Other Court
- Exhibit 8.19.4-13 Sample Investor Form 870-P(AD)
- Exhibit 8.19.4-14 Form 4605-A
- Exhibit 8.19.4-15 Form 886-Z (C) with Penalties for Years Ending After August 5, 1997
- Exhibit 8.19.4-16 Schedule of Adjustments for a Settlement Presentation on Form 870-PT(AD)
- Exhibit 8.19.4-17 Relationship of Information on Form 4605-A, 886-Z (C) and 870-P(AD)
- Exhibit 8.19.4-18 Form 886-Z (C) with Penalties for Years Ending Before August 6, 1997
- Exhibit 8.19.4-19 Allocation of Partnership Items
- Exhibit 8.19.4-20 Allocation of Partners' Ownership
- Exhibit 8.19.4-21 Form 3210 - CTF to Issue No Change Settlement Agreements
- Exhibit 8.19.4-22 Complete FPAA for Years Ended after August 5, 1997 and Affected Items Information Sheet
- Exhibit 8.19.4-23 Complete FPAA for Years Ended Before August 6, 1997 and Penalty and Affected Items Information Sheet
- Exhibit 8.19.4-24 FPAA Explanation of Adjustments If All Investors Signed Partial Agreements
- Exhibit 8.19.4-25 FPAA Explanation of Adjustments If Some Investors Signed Partial Agreements
- Exhibit 8.19.4-26 Rule 155 Type Computations Cover Sheet
- Exhibit 8.19.4-27 Approved Language for Forms 870 or 870-AD for Agreed Non-Docketed Munro-Type Cases
- Exhibit 8.19.4-28 Example of Munro Computation
- Exhibit 8.19.4-29 Approved Stipulation Language for Agreed Docketed Munro-Type Cases
- Exhibit 8.19.4-30 Notice of Adjustment
-
Because of the unusual procedural requirements of TEFRA, the tax computation specialist maybe asked to complete various research requests on the Partnership Control System (PCS). See IRM 8.19.5.19.2 for information on researching the PCS.
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| Internal Revenue Service Any Business Operating Unit |
Department of the Treasury Any Office |
| Anytown Appeals Office 9876 South 8th Ave. Room 123 Anytown, USA 01234-1234 |
Person to Contact: Mary Ferns Employee ID Number: 0X-02677 Tel: 000-123-1234 Fax: 000-123-1235 |
|
Contact Hours: 8:00 - 4:30 |
|
| Date: |
Refer Reply to: AP:A:AX:MF |
| Tax Matters Partner Begonia Partnership First Kale Street Anyplace, US XX001 |
Name of Partnership: Begonia Partnership Partnership Identifying Number: 0X-XX12346 |
| Taxpayer Identification No.: 0X-XX12346 Tax Year Ended: December 31, 1999 Date FPAA Mailed to Tax Matters Partner: |
|
| Certified Mail # AAAA 1111 2222 3333 4441 | |
| Dear Partner: | |
| NOTICE OF FINAL PARTNERSHIP ADMINISTRATIVE ADJUSTMENT | |
| The law requires us to send a Notice of Final Partnership Administrative Adjustment (FPAA) to the partnership named above, for the tax year shown above, and to each partner who is entitled to receive this notice. | |
| We are proposing adjustments to the partnership items of the partnership and tax year shown above. We will send the examination report outlining these adjustments to the Tax Matters Partner (TMP) of the partnership. (The TMP is the partner designated by the partnership to deal with the IRS.) He/she is also authorized to act for the partners who are not entitled to receive this notice. Any partner who wants a copy of the examination report should request it from the TMP. If the TMP is unable to provide you with a copy of the examination report, please contact the person named in the heading of this letter. | |
| Letter 1830 (Rev. 3-2001) | |
| 1 of 10 | |
| -2- |
| Taxable Years Ending Before August 6, 1997: |
| The adjustments to the partnership items reported on the partnership tax return may cause an increase or decrease in the tax liability on your individual return. Form 870-P, Agreement to Assessment and Collection of Deficiency in Tax for Partnership Adjustments, is a summary of the proposed adjustments to the partnership return. You may compute your share of the proposed adjustments by multiplying each adjusted partnership item by your percentage interest for that partnership item. |
| Taxable Years Ending After August 5, 1997: |
| The adjustments to the partnership items reported on the partnership tax return may cause an increase or decrease in the tax liability on your individual return. The adjustments may include partnership level determinations regarding penalties and additions to tax that relate to adjustments to partnership items. Form 870-PT, Agreement for Partnership Items and Partnership Level Determinations as to Penalties, Additions to Tax and Additional Amounts , is a summary of the proposed adjustments to the partnership return. You can compute your share of the proposed adjustments by multiplying each adjusted partnership item by your percentage interest for that partnership item. |
| You have three options available to you. |
| 1. If you agree with the adjustments: |
| Sign and return the enclosed Form 870-P/Form 870-PT. When you sign Form 870-P/Form 870-PT, you are agreeing to pay any additional tax and interest resulting from the adjustments to the partnership return. For tax years ending after August 5, 1997, you are also agreeing to any partnership level determination as to penalties, additions to tax and additional amounts that relate to adjustments to partnership items, if any. In addition, you are waiving your rights to participate in any administrative or judicial proceeding affecting partnership items and in partnership level determinations as to penalties, additions to tax and additional amounts that relate to adjustments to partnership items for the tax year in question. This is a binding settlement only if you sign and return Form 870-P/Form 870-PT and we sign on behalf of the Commissioner of Internal Revenue Service. When we sign the agreement form, the one-year extension of the period of limitations on assessments will begin under Internal Revenue Code section 6229(f). Once the agreement is signed by both parties, you may not file a claim to change the items in question or claim a refund/credit based on a readjustment. |
| Note: If you are the TMP of the partnership, see the section of this letter entitled, "For the Tax Matters Partner of the Partnership" . |
| Letter 1830 (Rev. 3-2001) |
| 2 of 10 |
| -3- |
| 2. If you do not agree with the adjustments: |
| If you are the TMP of the partnership and want to contest the adjustments in court, you must file a petition within 90 days from the date of this letter. During this 90-day period, no other partner may file a petition for judicial review. You can file your petition for readjustment of partnership items with: |
| 1. the United States Tax Court; 2. the United States Court of Federal Claims; or 3. the District Court of the United States, in the district of the partnership's principal place of business. |
| A petition filed by the TMP precludes all other actions. If the TMP doesn't file a petition by the 90th day from the date the FPAA was mailed, any partner or any 5 percent group entitled to receive this notice may petition one of these courts. A "5 percent group" includes any group of partners who together have an interest of five percent or more in profits of the partnership. The petition must be filed after the 90th day, but on or before the 150th day from the date the FPAA was mailed to the TMP. If more than one petition is filed in Tax Court, the first petition filed will go forward. All other petitions (even those filed earlier in one of the other courts) will be dismissed. If no one files a petition in Tax Court, the first petition filed in one of the other courts will go forward and subsequent petitions will be dismissed. |
| Petitions filed with the United States Tax Court must be mailed to: |
| United States Tax Court 400 Second Street, N.W. Washington, D.C. 20217 |
| Attach a copy of this letter to the petition. The time in which you must file a petition with the court is fixed by law and the court cannot consider your case if your petition is filed late. If this letter is addressed to both a husband and wife, and both want to petition the Tax Court, both must sign the petition, or each must file a separate signed petition. |
| When a partner (including each member of a 5 percent group that files a petition) files a petition in either the appropriate District Court or the Court of Federal Claims, the partner filing the petition must deposit the amount that the partner's tax liability would be increased if the treatment of the partnership items on the partner's return were made consistent with the treatment of partnership items under the FPAA. If you reported the partnership items the way the partnership reported them on its return, you can generally determine the amount to deposit by taking your pro rata share of the partnership adjustments |
| Letter 1830 (Rev. 3-2001) |
| 3 of 10 |
| -4- | |
| into account in recomputing your tax. You must deposit the appropriate amount with the IRS on or before the day you file your petition. | |
| 3. If you do nothing: | |
| If a petition for readjustment is not filed in any of the courts listed in this letter, the FPAA becomes final, and we will bill you for any additional tax plus interest that you may owe under the FPAA. You will not be permitted to contest the treatment of the partnership items of the partnership under the FPAA in any refund claim or suit. The law allows the Service to bill you after 150 days from the mailing date of the FPAA to the TMP. | |
| However, if a petition is filed in the Tax Court, and the Tax Court upholds the adjustments in whole or in part, we will not bill you until the Tax Court decision is final. | |
| You may wish to contact the TMP of the partnership or your tax advisor to discuss this matter. | |
| If you have any questions please write to the person whose name and address are shown in the heading of this letter. If you write, attach a copy of this letter to help identify your account. Also, include your telephone number and the most convenient time for us to call you in case we need additional information. | |
| If you prefer, you may call the IRS contact person at the telephone number shown in the heading of this letter. If this number is outside your local calling area, there will be a long distance charge to you. | |
| Thank you for your cooperation. | |
| Sincerely, | |
| Martin Marigold Commissioner By |
|
| Julia Orchid Team Manager |
|
| Enclosures: Form 870-PT Copy of this letter |
|
| Letter 1830 (Rev. 3-2001) | |
| 4 of 10 | |
| -5- |
| FOR THE TAX MATTERS PARTNER OF THE PARTNERSHIP |
| If you are the Tax Matters Partner (TMP), you are entitled to make an agreement to bind non-notice partners to the treatment of the partnership items as shown on the enclosed schedule of adjustments. You must add the following statement above the signature blocks on the Form 870-P or Form 870-PT: |
| "The undersigned Tax Matters Partner is signing this offer on behalf of himself (herself) and all other partners whom he (she) has the authority to bind; a final agreement resulting from the co-signature of the Commissioner of Internal Revenue will be binding on all such other partners." |
| As the TMP, you may submit a petition, as described above for the partnership on behalf of all partners. |
| If you have any questions, you can call the IRS contact person at the
telephone number shown in the heading of this letter. Thank you for your cooperation. |
| Letter 1830 (Rev. 3-2001) |
| 5 of 10 |
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| Begonia Partnership 0X-XX12346 |
Tax Year Ended: December 31, 1999 |
| Explanation of Adjustments | |
| (1) Other Income It is determined that other income is $93,000.00 and not $60,000.00 as shown on your return. Accordingly, the amount reported as other income is increased by $33,000.00. |
|
(2) Depreciation Expense and Basis of Energy Property It is determined that the basis of the new 5-year recovery property eligible for energy credit is $400,000.00 instead of the $600,000.00 shown on your return. Accordingly, the amount of property eligible for energy credit is decreased by $200,000.00. It is further determined that the depreciation deduction of $60,000.00, as shown in Exhibit 1, is allowable instead of the $90,000.00 shown on your return. Therefore, ordinary income is increased by $30,000.00. |
|
(3) Repair Expense The deduction of $12,000.00 shown on your return is not allowed because it has not been shown that the amounts claimed were ordinary and necessary expenses paid or accrued during the taxable year in carrying on any trade or business. Accordingly, the repair expense is reduced by $12,000.00. |
|
(4) Section 1231 Gain It is determined that your Section 1231 gain from the sale of assets is $1,500,000.00 and not $500,000.00 as shown on your return. Accordingly, the amount reported as Section 1231 Gain is increased by $1,000,000.00. |
|
(5) Negligence Penalty It is determined that the partnership improperly took deductions and/or credits due to negligence or intentional disregard of rules and regulations. IRC Section 6662 is applicable at the individual partner level and is asserted in this proceeding. |
|
(6) Capital Contributions Made During the 1999 Year It is determined that the capital contributions made during the 1999 year were $450,000.00 and not $600,000.00 as shown on your return. Accordingly, the capital contributions are decreased by $150,000.00. |
|
(7) Forgiveness of Debt Income It is determined that your forgiveness of debt income was $1,500,000.00 and not $500,000.00 as shown on your return. Accordingly, the forgiveness of debt income is increased by $1,000,000.00. |
|
| 10 of 10 | |
| Begonia Partnership 0X-XX12346 | Taxable Year Ended December 31, 1999 |
| FOR INFORMATION ONLY | |
| The explanations below provide the reasons
why the non-penalty affected items may be asserted after the partnership proceedings
have been completed. A petition to any court should not contain a non-penalty
affected item issue because the court will not have jurisdiction to consider
non-penalty affected items at this time. A court will have jurisdiction to
consider partnership related non-penalty affected items only after the partnership
and penalty affected item proceeding has been completed and the notices of
deficiency asserting the non-penalty affected items are issued. |
|
| IRC 704 | |
| It is determined that the partner’s
basis for the investment is less than the loss shown on the return. Therefore,
the loss in excess of basis is not allowable. |
|
| IRC 108 | |
| It is determined that the partners are not insolvent. Therefore, the forgiveness of debt income is not subject to exclusion under IRC Section 108. | |
| Internal Revenue Service Any Business Operating Division |
Department of the Treasury Any Area |
| Anytown Appeals Office 9876 South 8th Ave. Room 123 Anytown, USA 01234-1234 |
Person to Contact: Mary Ferns Employee ID Number: 0X-02677 Tel: 000-123-1234 Fax: 000-123-1235 |
| Date: | Contact Hours: 8:00 - 4:30 |
| Dennis Zinnia Tax Matters Partner Zinnia Partnership 123 Mum Street Anyplace, US XX001 |
Refer Reply to: AP:A:AX:MF |
| Name of Partnership: Zinnia Partnership Partnership Identifying Number: 0X-XX12333 |
|
| Taxpayer Identification No.: 00X-XX-1234 Tax Year Ended: December 31, 1988 Date FPAA Mailed to Tax Matters Partner: |
|
| Certified Mail # AAAA 1111 2222 3333 4442 | |
| Dear Partner: | |
| NOTICE OF FINAL PARTNERSHIP ADMINISTRATIVE ADJUSTMENT | |
| The law requires us to send a Notice of Final Partnership Administrative Adjustment (FPAA) to the partnership named above, for the tax year shown above, and to each partner who is entitled to receive this notice. | |
| We are proposing adjustments to the partnership items of the partnership and tax year shown above. We will send the examination report outlining these adjustments to the Tax Matters Partner (TMP) of the partnership. (The TMP is the partner designated by the partnership to deal with the IRS.) He/she is also authorized to act for the partners who are not entitled to receive this notice. Any partner who wants a copy of the examination report should request it from the TMP. If the TMP is unable to provide you with a copy of the examination report, please contact the person named in the heading of this letter. | |
| Letter 1830 (Rev. 3-2001) | |
| 1 or 10 | |
| -2- |
| Taxable Years Ending Before August 6, 1997: |
| The adjustments to the partnership items reported on the partnership tax return may cause an increase or decrease in the tax liability on your individual return. Form 870-P, Agreement to Assessment and Collection of Deficiency in Tax for Partnership Adjustments, is a summary of the proposed adjustments to the partnership return. You may compute your share of the proposed adjustments by multiplying each adjusted partnership item by your percentage interest for that partnership item. |
| Taxable Years Ending After August 5, 1997: |
| The adjustments to the partnership items reported on the partnership tax return may cause an increase or decrease in the tax liability on your individual return. The adjustments may include partnership level determinations regarding penalties and additions to tax that relate to adjustments to partnership items. Form 870-PT, Agreement for Partnership Items and Partnership Level Determinations as to Penalties, Additions to Tax and Additional Amounts , is a summary of the proposed adjustments to the partnership return. You can compute your share of the proposed adjustments by multiplying each adjusted partnership item by your percentage interest for that partnership item. |
| You have three options available to you. |
| 1. If you agree with the adjustments: |
| Sign and return the enclosed Form 870-P/Form 870-PT. When you sign Form 870-P/Form 870-PT, you are agreeing to pay any additional tax and interest resulting from the adjustments to the partnership return. For tax years ending after August 5, 1997, you are also agreeing to any partnership level determination as to penalties, additions to tax and additional amounts that relate to adjustments to partnership items, if any. In addition, you are waiving your rights to participate in any administrative or judicial proceeding affecting partnership items and in partnership level determinations as to penalties, additions to tax and additional amounts that relate to adjustments to partnership items for the tax year in question. This is a binding settlement only if you sign and return Form 870-P/Form 870-PT and we sign on behalf of the Commissioner of Internal Revenue Service. When we sign the agreement form, the one-year extension of the period of limitations on assessments will begin under Internal Revenue Code section 6229(f). Once the agreement is signed by both parties, you may not file a claim to change the items in question or claim a refund/credit based on a readjustment. |
| Note: If you are the TMP of the partnership, see the section of this letter entitled, "For the Tax Matters Partner of the Partnership." |
| Letter 1830 (Rev. 3-2001) |
| 2 of 10 |
| -3- |
| 2. If you do not agree with the adjustments: |
| If you are the TMP of the partnership and want to contest the adjustments in court, you must file a petition within 90 days from the date of this letter. During this 90-day period, no other partner may file a petition for judicial review. You can file your petition for readjustment of partnership items with: |
| 1. the United States Tax Court; 2. the United States Court of Federal Claims; or 3. the District Court of the United States, in the district of the partnership's principal place of business. |
| A petition filed by the TMP precludes all other actions. If the TMP doesn't file a petition by the 90th day from the date the FPAA was mailed, any partner or any 5 percent group entitled to receive this notice may petition one of these courts. A "5 percent group" includes any group of partners who together have an interest of five percent or more in profits of the partnership. The petition must be filed after the 90th day, but on or before the 150th day from the date the FPAA was mailed to the TMP. If more than one petition is filed in Tax Court, the first petition filed will go forward. All other petitions (even those filed earlier in one of the other courts) will be dismissed. If no one files a petition in Tax Court, the first petition filed in one of the other courts will go forward and subsequent petitions will be dismissed. |
| Petitions filed with the United States Tax Court must be mailed to: |
| United States Tax Court 400 Second Street, N.W. Washington, D.C. 20217 |
| Attach a copy of this letter to the petition. The time in which you must file a petition with the court is fixed by law and the court cannot consider your case if your petition is filed late. If this letter is addressed to both a husband and wife, and both want to petition the Tax Court, both must sign the petition, or each must file a separate signed petition. |
| When a partner (including each member of a 5 percent group that files a petition) files a petition in either the appropriate District Court or the Court of Federal Claims, the partner filing the petition must deposit the amount that the partner's tax liability would be increased if the treatment of the partnership items on the partner's return were made consistent with the treatment of partnership items under the FPAA. If you reported the partnership items the way the partnership reported them on its return, you can generally determine the amount to deposit by taking your pro rata share of the partnership adjustments |
| Letter 1830 (Rev. 3-2001) |
| 3 of 10 |
| -4- | |
| into account in recomputing your tax. You must deposit the appropriate amount with the IRS on or before the day you file your petition. | |
| 3. If you do nothing: | |
| If a petition for readjustment is not filed in any of the courts listed in this letter, the FPAA becomes final, and we will bill you for any additional tax plus interest that you may owe under the FPAA. You will not be permitted to contest the treatment of the partnership items of the partnership under the FPAA in any refund claim or suit. The law allows the Service to bill you after 150 days from the mailing date of the FPAA to the TMP. | |
| However, if a petition is filed in the Tax Court, and the Tax Court upholds the adjustments in whole or in part, we will not bill you until the Tax Court decision is final. | |
| You may wish to contact the TMP of the partnership or your tax advisor to discuss this matter. | |
| If you have any questions please write to the person whose name and address are shown in the heading of this letter. If you write, attach a copy of this letter to help identify your account. Also, include your telephone number and the most convenient time for us to call you in case we need additional information. | |
| If you prefer, you may call the IRS contact person at the telephone number shown in the heading of this letter. If this number is outside your local calling area, there will be a long distance charge to you. | |
| Thank you for your cooperation. | |
| Sincerely, | |
| Martin Marigold Commissioner By |
|
| Julia Orchid Team Manager |
|
| Enclosures: Form 870-P Copy of this letter |
|
| Letter 1830 (Rev. 3-2001) | |
| 4 of 10 | |
| -5- |
| FOR THE TAX MATTERS PARTNER OF THE PARTNERSHIP |
| If you are the Tax Matters Partner (TMP), you are entitled to make an agreement to bind non-notice partners to the treatment of the partnership items as shown on the enclosed schedule of adjustments. You must add the following statement above the signature blocks on the Form 870-P or Form 870-PT: |
| "The undersigned Tax Matters Partner is signing this offer on behalf of himself (herself) and all other partners whom he (she) has the authority to bind; a final agreement resulting from the co-signature of the Commissioner of Internal Revenue will be binding on all such other partners." |
| As the TMP, you may submit a petition, as described above for the partnership on behalf of all partners. |
| If you have any questions, you can call the IRS contact person at the
telephone number shown in the heading of this letter. Thank you for your cooperation. |
| Letter 1830 (Rev. 3-2001) |
| 5 of 10 |
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| Zinnia Partnership 0X-XX12333 |
Tax Year Ended: December 31, 1988 |
| Explanation of Adjustments | |
| (1) Other Income It is determined that other income is $93,000.00 and not $60,000.00 as shown on your return. Accordingly, the amount reported as other income is increased by $33,000.00. |
|
(2) Depreciation Expense and Basis of Energy Property It is determined that the basis of the new 5-year recovery property eligible for energy credit is $400,000.00 instead of the $600,000.00 shown on your return. Accordingly, the amount of property eligible for energy credit is decreased by $200,000.00. It is further determined that the depreciation deduction of $60,000.00, as shown in Exhibit 1, is allowable instead of the $90,000.00 shown on your return. Therefore, ordinary income is increased by $30,000.00. |
|
(3) Repair Expense The deduction of $12,000.00 shown on your return is not allowed because it has not been shown that the amounts claimed were ordinary and necessary expenses paid or accrued during the taxable year in carrying on any trade or business. Accordingly, the repair expense is reduced by $12,000.00. |
|
(4) Section 1231 Gain It is determined that your Section 1231 gain from the sale of assets is $1,500,000.00 and not $500,000.00 as shown on your return. Accordingly, the amount reported as Section 1231 Gain is increased by $1,000,000.00. |
|
(5) Capital Contributions Made During the 1988 Year It is determined that the capital contributions made during the 1988 year were $450,000.00 and not $600,000.00 as shown on your return. Accordingly, the capital contributions are decreased by $150,000.00. |
|
(6) Forgiveness of Debt Income It is determined that your forgiveness of debt income was $1,500,000.00 and not $500,000.00 as shown on your return. Accordingly, the forgiveness of debt income is increased by $1,000,000.00. |
|
| 10 of 10 | |
| Zinnia Partnership 0X-XX12333 |
Taxable Year Ended December 31, 1988 |
| FOR INFORMATION ONLY | |
| The explanations stated below are provided for your information. | |
| IRC section 6621(c) – (For tax years with due dates before January 1, 1990) | |
| It is determined that the partnership (S corporation) has improperly taken deductions and/or credits for tax motivated reasons. The increased rate of interest prescribed in IRC Section 6621(c) is applicable at the individual partner (shareholder) level after the partnership proceedings have been completed. Where the only items raised in a subsequent affected items notice of deficiency are additions to tax, the Service takes the position that the Tax Court will not have jurisdiction to consider IRC Section 6621(c) interest unless the interest is prepaid. IRC Section 6621(c) interest will be assessed and collected as regular interest in those cases. | |