301-52.22—Will any late payment fees I receive be reported as wages on a Form W-2?

No, the Internal Revenue Service (IRS) has determined that the late payment fee is in the nature of interest (compensation for the use of money). Your agency will report payments in accordance with IRS guidelines.

Code of Federal Regulations

[FTR Amdt. 90, 65 FR 3056, Jan. 19, 2000]

CFR

301-52.22—Will any late payment fees I receive be reported as wages on a Form W-2?

Code of Federal Regulations