Partial payment of tax

# (1)

To the tax liability of the taxpayer.

# (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.