IRS launches new calculator tool for contractors
June 08, 2026
The IRS has unveiled a new Excel-based calculator to help businesses working on large, multiyear construction or manufacturing projects calculate the interest related to those contracts.
The Percentage-of-Completion Method (PCM) Look-Back Interest Calculator supports calculations required for Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts.
The IRS says tax professionals, including CPAs, working with long-term construction and manufacturing contracts, could find the calculator helpful when computing look-back interest.
Practitioners should review the calculator output carefully, consider each taxpayer’s specific circumstances and ensure compliance, the agency added. Read more.
