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A payment from the government of a substantial amount owed to us was delayed because it was sent to the wrong remittance address. Are we entitled to receive the interest penalty on this late payment?

Answer: : Possibly. The overwhelming majority of payment delays result in errors made by the seller. Your first step is to be certain your company is not responsible for the fact that government’s payment was misdirected. Also, remember that under the Federal Prompt Pay Act, payment is considered made the day payment is issued, regardless of when it is received by the seller. Also, remember that the calculation of interest assumes the government has received a proper invoice. Until that document is delivered, the clock does not start on payment. When all is said and done, we are not sure if you will receive the interest you are seeking under this Federal law.

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