41 C.F.R. § 301-71.212 Should we report late payment fees 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). [FTR Amdt. 90, 65 FR 3058, Jan. 19, 2000]
Title 41: Public Contracts and Property Management
PART 301–71—AGENCY TRAVEL ACCOUNTABILITY REQUIREMENTS
Subpart C—Travel Claims for Reimbursement
§ 301-71.212 Should we report late payment fees as wages on a Form W-2?