Accrued Interest calculation for loan correction under VCP

[LMD1]

In correcting a loan through VCP for missed payments beyond the cure period, does the accrued interest calculation require the interest to be compounded?

[ETA Consulting LLC]

I don't know if I would say "required", but would easily argue it to be the most reasonable. It's more of a "why not" issue. You could propose your alternative calculation under VCP. If it's not reasonable, I've learned that the IRS agent won't hesitate tell you that your method is 'not acceptable' It's a process.

Good Luck!