§ 8942 Warrant Payment For Assessments

• •If you owe money to the government, you can pay with special papers called 'warrants' instead of cash.
• •The government must accept these warrants as payment, but they are worth their face value plus any extra money (interest) that has piled up.
• •This rule was added a long time ago, in 1943.

Imagine you owe the government $100 for taxes, and you have a warrant worth $100. Over time, the warrant earns $5 in interest.

The government must accept your $100 warrant plus the $5 interest, so you pay $105 total with the warrant instead of cash.