Sec. 1.5. (a) For a taxable period beginning after December 31, 2020, whenever a taxpayer makes a partial payment on the taxpayer’s tax liability, the department shall apply the partial payment in the following order:

(1) To the tax liability of the taxpayer.

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Terms Used In Indiana Code 6-8.1-8-1.5

  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(2) To any penalty owed by the taxpayer.

(3) To any interest owed by the taxpayer.

     (b) For a taxable period beginning before January 1, 2021, whenever a taxpayer makes a partial payment on the taxpayer’s tax liability, the department shall apply the partial payment in the following order:

(1) To any penalty owed by the taxpayer.

(2) To any interest owed by the taxpayer.

(3) To the tax liability of the taxpayer.

In the case of a taxpayer with multiple liabilities, the department may adopt rules under IC 4-22-2 to establish the manner in which payments are applied to the taxpayer’s outstanding liabilities.

As added by P.L.26-1985, SEC.15. Amended by P.L.234-2019, SEC.33.