Partial payment of tax

Ind. Code § 6-8.1-8-1.5

in effect

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. (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.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026