(c) 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. (1) To any registration or transfer fee owed by the taxpayer.
2. (2) To any excise tax owed by the taxpayer.
3. (3) To any late penalty first and then toward interest on the excise tax owed by the taxpayer.
4. (4) To any gross retail or use tax owed by the taxpayer.
5. (5) To any late penalty first and then toward interest on gross retail or use tax owed by the taxpayer.

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

1. (1) To any registration or transfer fee owed by the taxpayer.
2. (2) To any late penalty and interest on the late registration or excise tax owed by the taxpayer.
3. (3) To any excise tax owed by the taxpayer.
4. (4) To any late penalty and interest on gross retail or use tax owed by the taxpayer.

5. (5) To any gross retail or use tax owed by the taxpayer.

   If the taxpayer has liabilities for taxes in addition to what is due under this section, the payment must be applied as prescribed by this section and then pursuant to IC 6-8.1-8-1.5 or the department's rules.

   Formerly: Acts 1975, P.L.68, SEC.1. As amended by Acts 1977, P.L.87, SEC.8; P.L.93-1983, SEC.9; P.L.65-1997, SEC.18; P.L.234-2019, SEC.24.