As of January 1, 2017, Alaska implemented a higher interest rate on underpayment of tax on revenues from oil and gas production. This change appears in beginning from the 2017.1.0.0 release of Instant Interest. The elevated rate is reflected in the tax rate tables as a new jurisdiction “AO – Alaska Oil & Gas Production.” However, this jurisdiction should not be used for calculating an interest schedule. Rather, when a calculation is performed for a deficiency for “AK – Alaska” that extends beyond January 1, 2017, Instant Interest will display the following prompt:

If you respond “Yes,” Instant Interest will use the elevated rates. If you respond “No,” Instant Interest will use the non-elevated rates. If you respond “Cancel,” Instant Interest will not perform the calculation.