41 C.F.R. § 301-52.22 Will any late payment fees I receive be reported as wages on a Form W-2?
Title 41 - Public Contracts and Property Management
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. [FTR Amdt. 90, 65 FR 3056, Jan. 19, 2000]
Title 41: Public Contracts and Property Management
PART 301–52—CLAIMING REIMBURSEMENT
§ 301-52.22 Will any late payment fees I receive be reported as wages on a Form W-2?