2025 Session
Last amended: 2005 session
§ 270C.51 — Allocation of Payment
Plain-Language Summary
When you make a tax payment, the department can apply it first to your oldest debt, and within each debt, first to penalties, then interest, then the actual tax owed.
270C.51 ALLOCATION OF PAYMENT.
In the discretion of the commissioner, payments received for taxes may be credited first to the oldest liability not secured by a judgment or lien. For liabilities to which payments are applied, the commissioner may credit payments first to penalties, next to interest, and then to the tax due.
History:
History: History:
2005 c 151 art 1 s 57
Practical Notes
Your payment may go to penalties and interest before reducing the actual tax you owe, which is important to understand when making partial payments.