Payments For Past Years

[geekgirldany]

Customer owes taxes for several years. Re my OIC postings. He is going to pay in full for the past four years. For these to be applied to the appropriate years, is it correct that the memo part of money orders be marked with which year and tax form he is paying, also include his SS#?

I just want to double check that by doing this the payments will be posted to the year he is paying and not earlier years.

Thank you

[erchess]

I believe that if no OIC has been made,

your understanding of what he should do given his wishes is correct. However, if the IRS catches on I think they can ignore his expressed desires and apply the payments starting with his earliest debt. He will in time get correspondence acknowledging the checks and stating what application was actually made and if different from what he indicated, saying what he can do to argue the point and the deadline for doing so.

[geekgirldany]

No OIC has been made yet. It is going to wait until after the tax season. He has enough to pay the lower taxes from the past 4 years. Under $1,000. So my hope is that they will be applied correctly. Thank you for answering.