Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUE
Article 15 - TAX ADMINISTRATION; GENERAL PROVISIONS
Rule 8 - Collection
Section 8-1 - Partial payments
Current through September 18, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-8.1-8-1.5; IC 6-8.1-8-2
Sec. 1.
(a) If a taxpayer makes a partial payment of the taxpayer's tax liability, the payment shall only be applied first against the penalty, second the interest and third the principal liability of the particular billing for a given year and tax.
EXAMPLE
A taxpayer has outstanding tax liabilities for both income and sales tax for years 19X1, 19X2 and 19X3. If the taxpayer makes a partial payment for the outstanding income tax liability, the payment will first be applied to the penalty, interest and principal liability for income tax in 19X1. If any payment remains, it will be applied in the prescribed order for 19X2 and 19X3.
