Federal Agency Payment of Penalties and Interest on Federal Employment Taxes

An advance decision was requested on whether the Internal Revenue Service (IRS) can assess penalties and/or interest against an agency for late filing of Federal Insurance Contributions Act taxes, federal income taxes withheld from salaries, and underpayments of deposits for various federal excise taxes. Payment of interest and penalties for late filing or underpayment of employment taxes to the IRS by other federal agencies is not authorized. The appropriations of those agencies are not available for payment of interest and penalties.