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IRS Debts Tax Procedure

Designating Voluntary Tax Payments for Business Owners

If you owe a third party for several different items and you voluntarily pay a debt, you should get to designate which item the payment is to be applied to.  This is the general rule for voluntary payments made to the IRS.  But according to IRS Action on Decision 2014-01, the IRS will not follow […]

Categories
IRS Debts Tax Procedure

Deposits vs. Payments: A Distinction Taxpayers Must Understand Before Making Payments to the IRS

There is a difference between making a payment and a deposit when you pay the IRS.  Blom v. United States, a recent case in the Federal District Court of Pennsylvania, highlights the difference between an IRS tax deposit and an IRS tax payment. Facts & Procedural History Blom’s aunt died and named Blom as the […]