Additional interest

Additional interest is the charge assessed on delinquent debts in order to compensate the government for the time value of money owed and not paid when due. Additional interest is accrued and assessed from the date of delinquency. At a minimum, the interest rate will be set at the same rate as the Department of the Treasury's Current Value of Funds Rate (published in the Treasury Financial Management Bulletin). The rate is published annually and is subject to quarterly revisions if the annual average changes more than 2%. See also definitions for the terms Late Payment Interest and Interest/Fees Outstanding.