A communications terminal having a receiver and a method therefor is provided that substantially removes a known interferer from a digitally translated intermediate frequency signal. More specifically, the receiver includes an antenna for receiving a signal, and at least one combination of a mixer and filter for translating in the analog domain the signal to the intermediate frequency signal while maintaining separation from baseband. The receiver also includes a digitizer for digitally translating the intermediate frequency signal containing the known interferer from the analog domain into the digital domain, and an interference cancellation system for removing the known interferer from the digitally translated intermediate frequency signal by utilizing either a DC offset compensator or a correlator compensator.