Even the U.S. cannot default on bills
In the Spring of 1979, Congress was “playing politics” over the debt limit, but ultimately raised it to $830 billion (a far cry from today’s $14.3 trillion) with only hours to spare.
Unfortunately, because of the last-minute approval, there were delays getting the paperwork processed, resulting in thousands of late payments of about $120 million…technically defaulting on Treasury Bills.
There is debate over if this was a default or not, but regardless of terminology used, the delay in payment resulted in a raise in interest rates that translated into billions of dollars in interest payment on the nation’s debt (paid by taxpayers).
Even the US is not immune to interest charges as a result of unpaid debt. This minor blip in history resulted in a significant amount of additional debt.
If you have a tax debt, don’t make the same mistake Congress did and increase your burden with additional penalties and interest. The results could cost you!