clearly showing your name and address, Social Security number, payment amount, and the tax years you want the payment to be applied to. You should send this payment via Certified Mail return-receipt requested to insure that it is received by the IRS. If you don’t believe your tax payments were applied correctly you can request a copy of your account transcript that shows how all payments hI am often asked by clients whether they can designate how they want their payments they are making to the IRS applied. That is, can I tell the IRS what year to apply my payments to? The answer is yes. As long as you are making a voluntary payment, meaning your bank account has not been levied or your wages have not been garnished, you can designate how your payments will be applied to your tax liability. Now, where do you designate the payments? If you do not designate where to the apply the payments, the IRS will apply the payment to the oldest tax due first. This is not always in your best interest.

I would recommend that you designate your payments to the newest tax debt. This is because the IRS has ten years from the date of assessment of your taxes (usually April 16th the year taxes are due, if you file on time) to collect these taxes. Therefore, the older taxes will be wiped away more quickly than the new taxes. Also, if you are contemplating bankruptcy, older taxes are generally easier to discharge than newer taxes.

Now, we will look into the mechanics of exactly how you designate these payments. The first thing you need to do is to write your Social Security number or taxpayer identification number (if you are a business) on the memo line of the check. You should also write the type of tax and the year you want the check applied to. For example, “1040 income tax for 2005” if you want your payment designated to pay the 2005 income tax due from your personal1040 income tax return. You should also send a short cover letter clearly showing your name and address, Social Security number, payment amount, and the tax years you want the payment to be applied to. You should send this payment via Certified Mail return-receipt requested to insure that it is received by the IRS. If you don’t believe your tax payments were applied correctly you can request a copy of your account transcript that shows how all payments ha

your tax liability. Now, where do you designate the payments? If you do not designate where to the apply the payments, the IRS will apply the payment to the oldest tax due first. This is not always in your best interest.

I would recommend that you designate your payments to the newest tax debt. This is because the IRS has ten years from the date of assessment of your taxes (usually April 16th the year taxes are due, if you file on time) to collect these taxes. Therefore, the older taxes will be wiped away more quickly than the new taxes. Also, if you are contemplating bankruptcy, older taxes are generally easier to discharge than newer taxes.

Now, we will look into the mechanics of exactly how you designate these payments. The first thing you need to do is to write your Social Security number or taxpayer identification number (if you are a business) on the memo line of the check. You should also write the type of tax and the year you want the check applied to. For example, “1040 income tax for 2005” if you want your payment designated to pay the 2005 income tax due from your personal1040 income tax return. You should also send a short cover letter clearly showing your name and address, Social Security number, payment amount, and the tax years you want the payment to be applied to. You should send this payment via Certified Mail return-receipt requested to insure that it is received by the IRS. If you don’t believe your tax payments were applied correctly you can request a copy of your account transcript that shows how all payments h

ril 16th the year taxes are due, if you file on time) to collect these taxes. Therefore, the older taxes will be wiped away more quickly than the new taxes. Also, if you are contemplating bankruptcy, older taxes are generally easier to discharge than newer taxes.

Now, we will look into the mechanics of exactly how you designate these payments. The first thing you need to do is to write your Social Security number or taxpayer identification number (if you are a business) on the memo line of the check. You should also write the type of tax and the year you want the check applied to. For example, “1040 income tax for 2005” if you want your payment designated to pay the 2005 income tax due from your personal1040 income tax return. You should also send a short cover letter clearly showing your name and address, Social Security number, payment amount, and the tax years you want the payment to be applied to. You should send this payment via Certified Mail return-receipt requested to insure that it is received by the IRS. If you don’t believe your tax payments were applied correctly you can request a copy of your account transcript that shows how all payments h

te your Social Security number or taxpayer identification number (if you are a business) on the memo line of the check. You should also write the type of tax and the year you want the check applied to. For example, “1040 income tax for 2005” if you want your payment designated to pay the 2005 income tax due from your personal1040 income tax return. You should also send a short cover letter clearly showing your name and address, Social Security number, payment amount, and the tax years you want the payment to be applied to. You should send this payment via Certified Mail return-receipt requested to insure that it is received by the IRS. If you don’t believe your tax payments were applied correctly you can request a copy of your account transcript that shows how all payments hclearly showing your name and address, Social Security number, payment amount, and the tax years you want the payment to be applied to. You should send this payment via Certified Mail return-receipt requested to insure that it is received by the IRS. If you don’t believe your tax payments were applied correctly you can request a copy of your account transcript that shows how all payments have been applied. Be sure to save copies of your checks, the letters, and all the return-receipts so you can prove the payments were sent and how you wanted them applied if the IRS misapplies a payment.