US · guidance
Justice Manual § 9-114.110
Payment of Interest and Penalties on State and Local Real Property Taxes
The following policy is meant to ensure consistent national treatment of the payment of interest and penalties on state and local taxes on forfeited real property:
The United States will pay interest but not penalties on overdue taxes;
The formula for the rate of interest is set forth in 28 U.S.C. § 1961(a);
Higher rates of interest may be paid where the taxing authority has incurred out-of-pocket interest expenses in excess of the rate specified by 28 U.S.C. § 1961(a), e.g., where tax certificates have been sold to private investors;
United States Attorneys, with the concurrence of the Money Laundering, Narcotics and Forfeiture Section (MNF), Criminal Division, may agree to a higher rate of interest provided that such higher rate is not punitive; and
Taxes and interest thereon may only be paid up to the amount realized from the sale of the property. See Chapter 4 of the Asset Forfeiture Policy Manual ("Payment of Interest and Penalties on State and Local Real Property Taxes").
History
[updated January 2026]
Provenance
- Source
- justice.gov
- Retrieved
- 2026-09-20
- Edition
- jm-2026-09-20
- Content hash
e1b222f4923ea3e545c0e783ad39328418e19dd8a3b0b9a09bc5f58869c79893
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