# 31 C.F.R. § 5.5 (2026): How will Treasury entities add interest, penalty charges, and administrative costs to a Treasury debt? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_5 ## Section - **Citation:** 31 C.F.R. § 5.5 (2026) - **Heading:** How will Treasury entities add interest, penalty charges, and administrative costs to a Treasury debt? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 31 CFR: Money and Finance: Treasury / Part 5 / Subpart B / § 5.5: § 5.5 How will Treasury entities add interest, penalty charges, and administrative costs to a Treasury debt? ## Text (a) Assessment and notice. Treasury entities shall assess interest, penalties and administrative costs on Treasury debts in accordance with the provisions of 31 U.S.C. 3717 and 31 CFR 901.9, on Treasury debts. Interest shall be charged in accordance with the requirements of 31 U.S.C. 3717(a). Penalties shall accrue at the rate of 6% per year, or such other higher rate as authorized by law. Administrative costs, that is the costs of processing and handling a delinquent debt, shall be determined by the Treasury entity collecting the Treasury debt. Treasury entities may have additional policies regarding how interest, penalties, and administrative costs are assessed on particular types of debts. Treasury entities are required to explain in the notice to the debtor described in § 5.4 of this part how interest, penalties, costs, and other charges are assessed, unless the requirements are included in a contract or repayment agreement. (b) Waiver of interest, penalties, and administrative costs. Unless otherwise required by law, Treasury entities may not charge interest if the amount due on the debt is paid within 30 days after the date from which the interest accrues. See 31 U.S.C. 3717(d). Treasury entities may waive interest, penalties, and administrative costs, or any portion thereof, when it would be against equity and good conscience or not in the Treasury entity's best interest to collect such charges, in accordance with Treasury guidelines for waiving claims against Treasury employees for erroneous overpayments. See Treasury Directive 34-01 (Waiving Claims Against Treasury Employees for Erroneous Payments) set forth at appendix A of this part and at http://www.treas.gov/regs. Legal counsel approval is not required to waive such charges. Cf., §§ 5.7 and 5.8 of this part, which require legal counsel approval when compromising a debt or terminating debt collection activity on a debt. (c) Accrual during suspension of debt collection 4-01 (Waiving Claims Against Treasury Employees for Erroneous Payments) set forth at appendix A of this part and at http://www.treas.gov/regs. Legal counsel approval is not required to waive such charges. Cf., §§ 5.7 and 5.8 of this part, which require legal counsel approval when compromising a debt or terminating debt collection activity on a debt. (c) Accrual during suspension of debt collection. In most cases, interest, penalties and administrative costs will continue to accrue during any period when collection has been suspended for any reason (for example, when the debtor has requested a hearing). Treasury entities may suspend accrual of any or all of these charges when accrual would be against equity and good conscience or not in the Treasury entity's best interest, in accordance with Treasury guidelines for waiving claims against Treasury employees for erroneous overpayments. See Treasury Directive 34-01 (Waiving Claims Against Treasury Employees for Erroneous Payments), set forth at appendix A of this part and http://www.treas.gov/regs. ## Nearby sections - [31 C.F.R. § 5.4 (2026) § 5.4 What notice will Treasury entities send to a debtor when collecting a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_4.md) - [31 C.F.R. § 5.5 (2026) § 5.5 How will Treasury entities add interest, penalty charges, and administrative costs to a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_5.md) - [31 C.F.R. § 5.6 (2026) § 5.6 When will Treasury entities allow a debtor to pay a Treasury debt in installments instead of one lump sum?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_6.md) - [31 C.F.R. § 5.7 (2026) § 5.7 When will Treasury entities compromise a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_7.md) - [31 C.F.R. § 5.8 (2026) § 5.8 When will Treasury entities suspend or terminate debt collection on a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_8.md) - [31 C.F.R. § 5.9 (2026) § 5.9 When will Treasury entities transfer a Treasury debt to the Treasury Department's Financial Management Service for collection?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_9.md) - [31 C.F.R. § 5.10 (2026) § 5.10 How will Treasury entities use administrative offset (offset of non-tax Federal payments) to collect a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_10.md) - [31 C.F.R. § 5.11 (2026) § 5.11 How will Treasury entities use tax refund offset to collect a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_11.md) - [31 C.F.R. § 5.12 (2026) § 5.12 How will Treasury entities offset a Federal employee's salary to collect a Treasury debt?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_12.md) - [31 C.F.R. § 5.13 (2026) § 5.13 How will Treasury entities use administrative wage garnishment to collect a Treasury debt from a debtor's wages?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_13.md) - [31 C.F.R. § 5.14 (2026) § 5.14 How will Treasury entities report Treasury debts to credit bureaus?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_14.md) - [31 C.F.R. § 5.15 (2026) § 5.15 How will Treasury entities refer Treasury debts to private collection agencies?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_15.md) - [31 C.F.R. § 5.16 (2026) § 5.16 When will Treasury entities refer Treasury debts to the Department of Justice?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_16.md) - [31 C.F.R. § 5.17 (2026) § 5.17 Will a debtor who owes a Treasury debt be ineligible for Federal loan assistance or Federal licenses, permits or privileges?](https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_17.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T31_P5_S5_5. Check the current official text before relying on it. Not legal advice.