10 USC § 3707 - Interest and penalties for certain overpayments

---
identifier: "/us/usc/t10/s3707"
source: "usc"
legal_status: "official_legal_evidence"
title: "10 USC § 3707 - Interest and penalties for certain overpayments"
title_number: 10
title_name: "ARMED FORCES"
section_number: "3707"
section_name: "Interest and penalties for certain overpayments"
chapter_number: 271
chapter_name: "TRUTHFUL COST OR PRICING DATA (TRUTH IN NEGOTIATIONS)"
part_number: "V"
part_name: "ACQUISITION"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (h), Jan. 1, 2021, 134 Stat. 4209, 4216; Pub. L. 117–81, div. A, title XVII, § 1701(b)(10)(H), Dec. 27, 2021, 135 Stat. 2134.)"
---


# § 3707. Interest and penalties for certain overpayments

**(a)** **In General.—** If the United States makes an overpayment to a contractor under a contract subject to this chapter and the overpayment was due to the submission by the contractor of defective cost or pricing data, the contractor shall be liable to the United States—

**(1)** for interest on the amount of such overpayment, to be computed—

**(A)** for the period beginning on the date the overpayment was made to the contractor and ending on the date the contractor repays the amount of such overpayment to the United States; and

**(B)** at the current rate prescribed by the Secretary of the Treasury under section 6621 of the Internal Revenue Code of 1986; and

**(2)** if the submission of such defective data was a knowing submission, for an additional amount equal to the amount of the overpayment.

**(b)** **Liability Not Affected by Refusal to Submit Certification.—** Any liability under this section of a contractor that submits cost or pricing data but refuses to submit the certification required by section 3702(b) of this title with respect to the cost or pricing data shall not be affected by the refusal to submit such certification.

---

**Source Credit**: (Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (h), Jan. 1, 2021, 134 Stat. 4209, 4216; Pub. L. 117–81, div. A, title XVII, § 1701(b)(10)(H), Dec. 27, 2021, 135 Stat. 2134.)

## Editorial Notes

### References in Text

Section 6621 of the Internal Revenue Code of 1986, referred to in subsec. (a)(1)(B), is classified to , Internal Revenue Code.

### Codification

The text of subsec. (f) of , which was transferred to this section and amended by , was based on , , , 1783–166, and , , , 3341–166; , formerly title IV, § 952(a), , , renumbered title IX, , , ; , , ; , , ; , §§ 1204(1), 1209, , , 3277. , , and  added identical sections.  is a corrected version of .

### Amendments

2021—, transferred subsec. (f) of  to this section, redesignated it as subsec. (a), and redesignated par. (2) as subsec. (b).

Subsec. (a). , as amended by , after redesignation of  as subsec. (a) of this section, in heading, substituted “In General” for “Interest and Penalties for Certain Overpayments”, in introductory provisions, struck out par. (1) designation at beginning and substituted “this chapter” for “this section”, and redesignated subpar. (A), its cls. (i) and (ii), and subpar. (B) as par. (1), subpars. (A) and (B), and par. (2), respectively.

Subsec. (b). , as amended by , after redesignation of  as subsec. (b) of this section, inserted heading and substituted “this section” for “this subsection” and “” for “subsection (a)(2)”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Amendment by  applicable as if included in the enactment of title XVIII of  as enacted, see , set out in a note preceding  and Effective Date note below.

### Effective Date

Section and amendment by  effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as an Effective Date of 2021 Amendment note preceding .