What It Is
When you send the IRS a voluntary payment, you can direct exactly where it goes, which year and which type of tax. This only works for voluntary payments. Money the IRS takes by levy, or payments required under an agreement that already says how they apply, do not count. The most common use is payroll tax, where directing a payment to the trust fund portion of the debt can lower what a responsible person faces under the Trust Fund Recovery Penalty. There is no special form. The power is in the written instructions and keeping proof of them.
Is This You?
- You are making a payment to the IRS on your own, not under a levy
- You have more than one tax period or type of tax in play
- You run a business with payroll tax debt
What You Can Do
These are the steps that move this forward. Work through them in order.
- Confirm the payment is voluntary, not a levy or a required installment
- Decide which period and type of tax to target
- Know the reason that target helps you most
- Write clear designation instructions to include with the payment
- For payroll debt, weigh the trust fund portion against the rest
- Keep proof of the instructions you sent
Get the Voluntary Payments Checklist
The full checklist as a printable PDF, free. Enter your email and we will send it over.
Want the Full Walkthrough?
Voluntary Payments Guide
How to designate a payment, the trust fund strategy, and the exact wording to use.
Have payroll tax debt and want to protect yourself? Send us your situation for a free review.